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






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






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






4. Process of recording transactions in a journal.






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






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






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






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






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






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






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






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






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






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






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






16. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






18. 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.






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






20. Assets put into the business by the owner.






21. 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.






22. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






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






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






31. 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).






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






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






34. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






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






40. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






41. 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.






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






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






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






45. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.






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






47. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






49. 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.






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