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






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






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






4. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






5. Process of recording transactions in a journal.






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






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






8. Journal entries that affect at least three accounts.






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






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






11. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






13. 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.






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






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






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






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






18. 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.






19. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






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






23. Assets put into the business by the owner.






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






25. The money left over when income exceeds expenditure.






26. 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






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






28. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






30. 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).






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






32. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






36. 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.






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






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






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






40. Individuals hired to review financial reports and information systems of organizations.






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






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






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

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






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






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






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






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






49. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






50. 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.