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DSST Principles Of Finance

Subjects : dsst, business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






2. Monies (or sums of money) received from an investment; often in percent form.






3. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






4. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






5. A loan that is backed by collateral such as cars - houses - or other assets.






6. The value of a future cash steam discounted at the appropriate market interest rate.






7. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






8. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






9. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






10. Journal entries that affect at least three accounts.






11. Persons using accounting information who are not directly involved in running the organization.






12. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






13. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






14. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






15. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






16. Record containing all accounts (with amounts) for a business.






17. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






18. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






19. Individuals or organizations that owe money.






20. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






21. Area of accounting aimed mainly at serving external users.






22. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






23. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






24. Statements that show the effect of proposed transactions and events as if they had occurred.






25. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






26. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






27. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






28. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






29. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






30. Rules that specify acceptable accounting practices.






31. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






32. Persons using accounting information who are directly involved in managing the organization.






33. Owners of a corporation who usually receive dividends. Also called shareholders.






34. Owners of a corporation who usually receive dividends. Also called stockholders.






35. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






36. Business owned by one person that is not organized as a corporation.






37. Assets put into the business by the owner.






38. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






39. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






40. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






41. Items paid for in advance of receiving their benefits. Classified as assets.






42. Excess of expenses over revenues for a period.






43. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






44. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






45. Accounting information is based on cost with potential subsequent adjustments to fair value.






46. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






47. Expenses that remain the same regardless of the circumstances.






48. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






49. An expense that changes from period to perio - such as food or gasoline costs.






50. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.