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






3. Assets put into the business by the owner.






4. 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.






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






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






7. Excess of expenses over revenues for a period.






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






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






10. Process of recording transactions in a journal.






11. 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.






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






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






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






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






16. A corporation's basic ownership share.






17. Happenings that both affect an organization's financial position and can be reliably measured.






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






19. An expense that changes from period to perio - such as food or gasoline costs.






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






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






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






23. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






25. 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.






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






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






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






29. 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






30. 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.






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






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






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






34. Individuals or organizations that owe money.






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






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






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






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






39. 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






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






41. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






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






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






46. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






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






50. 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.