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






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






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






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






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






6. 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).






7. Individuals or organizations entitled to receive payments






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






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






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






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






12. 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






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






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






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






16. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






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






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






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






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






23. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






26. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






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






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






30. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






31. Assets put into the business by the owner.






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






33. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






35. Business owned by two or more people.






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






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






38. The money left over when income exceeds expenditure.






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






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






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






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






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






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






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






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






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






48. Individuals or organizations that owe money.






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






50. 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.







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