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






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






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






4. Excess of expenses over revenues for a period.






5. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






7. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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






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






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






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






13. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






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






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






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






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






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






21. Principle that assumes transactions and events can be expressed in money units.






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






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






24. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






28. 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.






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






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






31. 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






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






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






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






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






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






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






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






39. Journal entries that affect at least three accounts.






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






41. The money left over when income exceeds expenditure.






42. Business owned by a single person.






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






44. 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.






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






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






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






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






49. The twelve month period that ends when a company's sales activities are at their lowest point.






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