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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. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






3. 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.






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






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






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






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






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






10. 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.






11. 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.






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

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






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






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






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






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






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






20. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






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






23. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






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






26. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






29. Gross increase in equity from a company's business activities that earn income.






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






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






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






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






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






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






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






37. 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).






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






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






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






41. 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.






42. 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.






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






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






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






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






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






48. 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.






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






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