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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. Business owned by a single person.






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






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






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






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






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






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






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






9. Accounting information is based on cost with potential subsequent adjustments to fair value.






10. 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.






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






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






13. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






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






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






19. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






21. Assets put into the business by the owner.






22. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






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






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






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






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






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






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






32. Individuals or organizations entitled to receive payments






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






34. Individuals or organizations that owe money.






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






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






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






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






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

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






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






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






43. 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.






44. 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.






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






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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