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






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






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






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






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






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






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






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






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






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






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






12. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






13. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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






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






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






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






20. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






21. 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.






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






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






24. 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).






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






26. Journal entries that affect at least three accounts.






27. 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






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






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






30. Happenings that both affect an organization's financial position and can be reliably measured.






31. The money left over when income exceeds expenditure.






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






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






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






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






36. Business owned by two or more people.






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






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






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






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






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






42. Uncertainty about expected return.






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






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






45. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






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






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






49. Rules that specify acceptable accounting practices.






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