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






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






3. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






5. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






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






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






10. 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.






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






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






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






14. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






17. Journal entries that affect at least three accounts.






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






19. Excess of expenses over revenues for a period.






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






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






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






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






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






26. A tax deferred account that allows individuals to plan for their retirement.






27. An expense that changes from period to perio - such as food or gasoline costs.






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






29. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






30. 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.






31. 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.






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






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






34. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






35. Process of recording transactions in a journal.






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






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






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






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






40. 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.






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






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






43. Business owned by two or more people.






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






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






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






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






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






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






50. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.