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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. 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.






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






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






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






5. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






8. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






9. 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.






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






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






12. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






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






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






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






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






18. 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






19. 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.






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






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






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






23. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






25. Business owned by a single person.






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






27. Business owned by two or more people.






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






29. 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.






30. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






32. A corporation's basic ownership share.






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






34. 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.






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






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






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






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






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






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






41. Journal entries that affect at least three accounts.






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






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






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






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






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






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






48. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






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