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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. 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).






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






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






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






5. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






7. Business owned by two or more people.






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






9. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






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. Principle that assumes transactions and events can be expressed in money units.






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






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






22. List of accounts and balances prepared before accounting adjustments are recorded and posted.






23. Individuals hired to review financial reports and information systems of organizations.






24. Length of time covered by financial statements; also called reporting period.






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






26. Excess of expenses over revenues for a period.






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






28. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






29. The money left over when income exceeds expenditure.






30. 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.






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






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






33. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






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






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






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






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






39. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






41. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






42. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






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






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






46. 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.






47. 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.






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






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






50. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb