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






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






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






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






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






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






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






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






9. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






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






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






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






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






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






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






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






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






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






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






22. Owners of a corporation who usually receive dividends. Also called shareholders.






23. 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.






24. Uncertainty about expected return.






25. Gross increase in equity from a company's business activities that earn income.






26. Process of transferring journal entry information to the ledger; computerized systems automate this process.






27. Individuals or organizations entitled to receive payments






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






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






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






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






32. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






33. Report of changes in equity over a period; adjusted for increases and for decreases.

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34. Business owned by a single person.






35. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






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






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






40. Owners of a corporation who usually receive dividends. Also called stockholders.






41. 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.






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






43. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






45. 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.






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






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






48. 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.






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






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