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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. Uncertainty about expected return.






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






3. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






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






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






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






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






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






10. 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.






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






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






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






14. 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.






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






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






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






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






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






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






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






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






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






24. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






26. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






28. Record containing all accounts (with amounts) for a business.






29. Individuals or organizations entitled to receive payments






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






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






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






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






34. Individuals or organizations that owe money.






35. Rules that specify acceptable accounting practices.






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






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






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






39. Assets put into the business by the owner.






40. 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.






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






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






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






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






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






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






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






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






49. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






Can you answer 50 questions in 15 minutes?



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