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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 Bookkeeping.






2. 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.






3. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






4. Assets put into the business by the owner.






5. Individuals or organizations that owe money.






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






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






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






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






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






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






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






13. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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 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.






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






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

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






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






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






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






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






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






24. Journal entries that affect at least three accounts.






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






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






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






28. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






31. Business owned by a single person.






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






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






34. 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






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






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






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






38. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






41. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






42. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






44. The principle prescribing that revenue is recognized when earned.






45. Business owned by two or more people.






46. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






50. 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.