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






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






3. Business owned by two or more people.






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






5. Excess of expenses over revenues for a period.






6. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






8. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






10. 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.






11. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






13. Exchanges of economic value between one entity and another entity.






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






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






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






17. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






18. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






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






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






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






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






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






26. 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.






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






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






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






30. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






31. Rules that specify acceptable accounting practices.






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






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






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






35. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






36. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






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






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






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






42. 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.






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






44. 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






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






46. 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.






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






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






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






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







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