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






2. Business owned by a single person.






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






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






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






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






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






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






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






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






11. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






25. Excess of expenses over revenues for a period.






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






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






28. Business owned by two or more people.






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






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






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






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






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






34. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






35. Journal entries that affect at least three accounts.






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






37. 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






38. Individuals or organizations that owe money.






39. A corporation's basic ownership share.






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






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






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






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






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






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






47. The money left over when income exceeds expenditure.






48. 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.






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






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