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






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






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






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






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






6. Excess of expenses over revenues for a period.






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






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






9. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






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






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






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






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






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






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






17. Individuals or organizations entitled to receive payments






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






19. 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






20. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






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






24. Business owned by two or more people.






25. Assets put into the business by the owner.






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






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






28. 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.






29. 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.






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






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






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






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






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






35. 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.






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






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






38. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






40. Uncertainty about expected return.






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






42. Individuals hired to review financial reports and information systems of organizations.






43. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






46. 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.






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. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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







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