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






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






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






4. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






9. 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.






10. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






11. Uncertainty about expected return.






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






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






14. 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.






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






16. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






17. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






19. 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.






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






21. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






23. 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.






24. Individuals or organizations entitled to receive payments






25. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






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






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






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






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






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






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






35. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






36. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






38. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






39. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






41. 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.






42. 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






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






44. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






47. All purpose journal for recording the debits and credits of transactions and events.






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






49. The money left over when income exceeds expenditure.






50. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.