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






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






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






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






5. The combining of two or more comapnies into one larger company.






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






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






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






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






10. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






11. Balance sheet that broadly groups assets - liabilities - and equity accounts.






12. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






13. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






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






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






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






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






19. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






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






29. 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.






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






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






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






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






34. Excess of expenses over revenues for a period.






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






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






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






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

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






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






41. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






43. Exchanges of economic value between one entity and another entity.






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






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






46. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






48. 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.






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






50. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.