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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. Tool used to show the effects of transactions and events on individual accounts.






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






3. Activities within an organization that can affect the accounting equation.






4. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






6. 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.






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. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






9. 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.






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






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






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






13. Individuals or organizations that owe money.






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






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






16. Individuals or organizations entitled to receive payments






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






18. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






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






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






24. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






27. Rules that specify acceptable accounting practices.






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






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






30. A corporation's basic ownership share.






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






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






33. 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.






34. 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.






35. 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.






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






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






38. Business owned by a single person.






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






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






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






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






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






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






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






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






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






48. 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).






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






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