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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. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






4. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






5. The first time a company sells shares of its stock to the public.






6. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






7. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






8. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






9. 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.






10. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






11. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.






12. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






13. 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.






14. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






15. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






17. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.






18. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






20. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






23. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






24. Income from investments - including dividends - interest - or the sale of a property.






25. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






27. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






28. The combining of two or more comapnies into one larger company.






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






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






31. Activities within an organization that can affect the accounting equation.






32. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






33. List of accounts and balances prepared after period-end adjustments are recorded and posted.






34. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






35. The principle prescribing that revenue is recognized when earned.






36. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






38. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






40. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






41. Rules that specify acceptable accounting practices.






42. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






44. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






46. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






47. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






48. 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.






49. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






50. Business owned by a single person.