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






2. 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.






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






4. 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.






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






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






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






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






9. 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.






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






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






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






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






14. 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.






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






16. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






18. 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.






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






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






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






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






23. Rules that specify acceptable accounting practices.






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






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






26. Journal entries that affect at least three accounts.






27. Individuals or organizations entitled to receive payments






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






29. A corporation's basic ownership share.






30. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






32. Items paid for in advance of receiving their benefits. Classified as assets.






33. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






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






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






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






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






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






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






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






44. The money left over when income exceeds expenditure.






45. Individuals or organizations that owe money.






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






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






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






49. An expense that changes from period to perio - such as food or gasoline costs.






50. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.