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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. 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).






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






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






5. 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.






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






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






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






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






10. Assets put into the business by the owner.






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






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






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






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






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






16. 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).






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






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






19. 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.






20. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






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






24. Independent group of full-time members responsible for setting accounting rules.






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






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






27. 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.






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






29. Outflows or using up of assets as part of operations of business to generate sales.






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






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






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






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






34. A tax deferred account that allows individuals to plan for their retirement.






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






36. Uncertainty about expected return.






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






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






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






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






41. Process of recording transactions in a journal.






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






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






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






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. 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.






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






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






49. Length of time covered by financial statements; also called reporting period.






50. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.