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






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






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






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






5. Owners of a corporation who usually receive dividends. Also called stockholders.






6. 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.






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






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






9. 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.






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






11. 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.






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






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






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






15. 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.






16. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






17. Exchanges of economic value between one entity and another entity.






18. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






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






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






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






23. Process of recording transactions in a journal.






24. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






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






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






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






29. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






31. 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.






32. 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






33. Area of accounting aimed mainly at serving the decision-making needs of internal users.






34. A corporation's basic ownership share.






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






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






37. The money left over when income exceeds expenditure.






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






39. 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.






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






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






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






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






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






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






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






47. 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.






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






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






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