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






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






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






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






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






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






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






8. 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.






9. 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.






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






11. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






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






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






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






17. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






19. 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






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






21. A tax deferred account that allows individuals to plan for their retirement.






22. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






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






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






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






27. Report of changes in equity over a period; adjusted for increases and for decreases.

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






29. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






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






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






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






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






37. A corporation's basic ownership share.






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






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






40. Individuals or organizations that owe money.






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






42. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






44. Process of recording transactions in a journal.






45. The money left over when income exceeds expenditure.






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






47. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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