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






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






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






4. Individuals or organizations entitled to receive payments






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






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






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






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






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






10. A corporation's basic ownership share.






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






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






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






14. 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






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






16. 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.






17. 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






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






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






20. A legal entity that is seperate from its owners.






21. 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.






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






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






24. Uncertainty about expected return.






25. Journal entries that affect at least three accounts.






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






27. 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.






28. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






30. 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.






31. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






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






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






35. Excess of expenses over revenues for a period.






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






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






38. 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).






39. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






41. Difference between total debits and total credits (including the beginning balance) for an account.






42. All purpose journal for recording the debits and credits of transactions and events.






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






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






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






46. The money left over when income exceeds expenditure.






47. 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.






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






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






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