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






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






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






4. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






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






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






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






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






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






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






14. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






15. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






17. 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.






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

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19. Happenings that both affect an organization's financial position and can be reliably measured.






20. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






21. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






23. Persons using accounting information who are not directly involved in running the organization.






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






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






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






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






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






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






30. Excess of expenses over revenues for a period.






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






32. 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.






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






34. Business owned by one person that is not organized as a corporation.






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






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






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






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






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






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






41. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






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






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






46. Independent group of full-time members responsible for setting accounting rules.






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






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






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






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







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