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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. 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.






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






3. 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






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






5. 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).






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






7. 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).






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






9. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






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






13. 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.






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






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






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






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






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






21. Business owned by a single person.






22. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






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






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






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






27. 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






28. 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.






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






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






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






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






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






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






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






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






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






38. Individuals hired to review financial reports and information systems of organizations.






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






40. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






41. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






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






44. Process of recording transactions in a journal.






45. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






48. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






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