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






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






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






4. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






5. Assets put into the business by the owner.






6. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






7. Goals that are specific - measurable - attainable - realistic - and time bound.






8. Assets pulled out of the business by the owner.






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






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






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






12. Journal entries that affect at least three accounts.






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






14. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






16. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






17. Independent group of full-time members responsible for setting accounting rules.






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






19. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






39. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






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






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






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






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






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






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






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






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






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







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