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






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






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






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






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






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






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






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






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






10. The money left over when income exceeds expenditure.






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






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






13. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






15. Individuals or organizations that owe money.






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






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






18. 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.






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. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






21. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






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






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






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






27. 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.






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






29. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






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






33. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






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






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






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






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






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






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






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






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






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






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






46. Individuals or organizations entitled to receive payments






47. 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.






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






49. A corporation's basic ownership share.






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







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