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






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






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






4. Excess of expenses over revenues for a period.






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






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






7. 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.






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






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






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






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






12. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






14. 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.






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






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






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






18. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






20. An expense that changes from period to perio - such as food or gasoline costs.






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






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






23. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






24. Process of recording transactions in a journal.






25. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






26. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






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






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






31. All purpose journal for recording the debits and credits of transactions and events.






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






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






34. 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.






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






36. 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.






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






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






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






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

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






42. 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.






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






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






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






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






47. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






49. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






50. 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.