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






2. 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






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






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

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






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






7. Excess of expenses over revenues for a period.






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






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






10. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






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






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






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






16. 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.






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






18. 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.






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






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






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






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






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






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






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






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






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






28. 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).






29. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






30. A corporation's basic ownership share.






31. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






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






38. 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.






39. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






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






44. The money left over when income exceeds expenditure.






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






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






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






48. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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







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