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






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






3. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






4. Tool used to show the effects of transactions and events on individual accounts.






5. 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.






6. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






7. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






9. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






10. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






11. 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.






12. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






13. The twelve month period that ends when a company's sales activities are at their lowest point.






14. 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.






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






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






17. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






18. 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).






19. Income that is available after all of the essential financial commitments have been paid.






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






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






22. Individuals or organizations entitled to receive payments






23. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






25. Journal entries that affect at least three accounts.






26. Loaning or giving money to a business in orer to save it from bankruptcy.






27. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






28. Outflows or using up of assets as part of operations of business to generate sales.






29. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






31. List of accounts used by a company' includes and identification number for each account.






32. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






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






37. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






40. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






41. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






43. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






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






46. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






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






49. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






50. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.