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






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






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






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






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






6. Assets put into the business by the owner.






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






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






9. Individuals or organizations that owe money.






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






11. 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.






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






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






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






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






16. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






18. Uncertainty about expected return.






19. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






22. Excess of expenses over revenues for a period.






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






24. Individuals or organizations entitled to receive payments






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






26. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






27. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






28. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






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






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






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






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






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






36. A legal entity that is seperate from its owners.






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






38. 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.






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






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






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






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






43. 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.






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






45. Process of recording transactions in a journal.






46. 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.






47. Area of accounting aimed mainly at serving external users.






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






49. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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