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






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






3. Individuals or organizations entitled to receive payments






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






5. 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.






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






7. Uncertainty about expected return.






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






9. Business owned by a single person.






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






11. The first time a company sells shares of its stock to the public.






12. Process of recording transactions in a journal.






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






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






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






16. A written framework to guide the development - preparation - and interpretation of financial accounting information.






17. Individuals or organizations that owe money.






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






19. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






21. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






23. Assets put into the business by the owner.






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






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






26. 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.






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






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






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






30. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






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






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






35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






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






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






41. Gross increase in equity from a company's business activities that earn income.






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






43. 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.






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






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






46. 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.






47. The money left over when income exceeds expenditure.






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






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






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