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






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






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






4. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






6. Persons using accounting information who are directly involved in managing the organization.






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






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






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






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






11. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






13. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






15. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






16. 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.






17. Length of time covered by financial statements; also called reporting period.






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






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






20. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






21. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






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






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






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






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






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. Individuals or organizations that owe money.






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






31. Outflows or using up of assets as part of operations of business to generate sales.






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






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






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






35. Activities within an organization that can affect the accounting equation.






36. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






39. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






41. 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.






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






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






44. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






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






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






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






49. Expenses that remain the same regardless of the circumstances.






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