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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. 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






2. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






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






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






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






8. Journal entries that affect at least three accounts.






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






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






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






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






13. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






15. 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






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






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






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






19. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






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






22. Business owned by a single person.






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






24. 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.






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






26. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






28. A corporation's basic ownership share.






29. Assets put into the business by the owner.






30. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






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






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






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






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






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






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






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






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






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






43. Excess of expenses over revenues for a period.






44. Statements that show the effect of proposed transactions and events as if they had occurred.






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






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






47. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






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







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