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






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






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






4. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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






11. Journal entries that affect at least three accounts.






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






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






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






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






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






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






19. 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.






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






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






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






23. Individuals or organizations that owe money.






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






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






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






27. Assets put into the business by the owner.






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






29. 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.






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






31. Income from investments - including dividends - interest - or the sale of a property.






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

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






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






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






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






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






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






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






40. 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.






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






42. Individuals or organizations entitled to receive payments






43. Rules that specify acceptable accounting practices.






44. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






46. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






47. 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.






48. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






50. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






Can you answer 50 questions in 15 minutes?



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