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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 due to be paid or settled within one year or the company's operating cycle - whichever is longer.






2. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






4. 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.






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






6. A corporation's basic ownership share.






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






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






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






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






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






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






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






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






15. 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.






16. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






17. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






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






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






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






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






23. Individuals or organizations that owe money.






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






25. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






34. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






35. 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.






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






37. Assets put into the business by the owner.






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






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






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






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






42. The money left over when income exceeds expenditure.






43. Uncertainty about expected return.






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






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






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






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






48. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






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