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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. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






4. A corporation's basic ownership share.






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






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






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






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






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






10. Outflows or using up of assets as part of operations of business to generate sales.






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






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






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






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






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






16. Excess of expenses over revenues for a period.






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

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






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






20. 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.






21. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






23. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






26. Rules that specify acceptable accounting practices.






27. Individuals or organizations that owe money.






28. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






29. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






33. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






36. Process of recording transactions in a journal.






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






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






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






40. The combining of two or more comapnies into one larger company.






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






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






43. Business owned by two or more people.






44. 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.






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






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






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






48. Business owned by a single person.






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






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