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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. 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.






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






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






4. Monies (or sums of money) received from an investment; often in percent form.






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






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






7. A legal entity that is seperate from its owners.






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

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9. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






25. 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






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






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






28. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






37. Business owned by a single person.






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






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






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






41. Area of accounting aimed mainly at serving external users.






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






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






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






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






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






47. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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