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






2. 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.






3. 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.






4. Principle that assumes transactions and events can be expressed in money units.






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






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






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






8. Excess of expenses over revenues for a period.






9. Business owned by two or more people.






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






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






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






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


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






15. Individuals or organizations entitled to receive payments






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






17. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






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






21. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






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






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






25. 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.






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






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






28. A corporation's basic ownership share.






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






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






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






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






33. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






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






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






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






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






46. 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.






47. List of accounts used by a company' includes and identification number for each account.






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






49. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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