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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. A loan that is backed by collateral such as cars - houses - or other assets.






2. Business owned by two or more people.






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






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






5. 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).






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






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






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






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






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






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






12. 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.






13. 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.






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






15. 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.






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






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






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






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






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






21. 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.






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






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






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






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






26. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






28. Assets put into the business by the owner.






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






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






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






32. Items paid for in advance of receiving their benefits. Classified as assets.






33. 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.






34. 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.






35. 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






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






37. A corporation's basic ownership share.






38. The combining of two or more comapnies into one larger company.






39. 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.






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






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






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






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






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






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






46. Business owned by a single person.






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






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






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






50. 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.