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






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






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






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






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






6. Individuals or organizations entitled to receive payments






7. 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






8. 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.






9. 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






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






11. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






12. Business owned by a single person.






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






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






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






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






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






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






19. 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.






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






21. Assets pulled out of the business by the owner.






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






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






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






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






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






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






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






29. 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).






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






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






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






33. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






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






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






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






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






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






43. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






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






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






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






47. Assets put into the business by the owner.






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






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






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