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






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






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






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






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






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






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






8. Journal entries that affect at least three accounts.






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






10. Individuals or organizations entitled to receive payments






11. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






12. 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.






13. A corporation's basic ownership share.






14. Excess of expenses over revenues for a period.






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






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






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






18. 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.






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






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






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






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






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






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






25. The money left over when income exceeds expenditure.






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






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






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






29. Area of accounting aimed mainly at serving external users.






30. 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.






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






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






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






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






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






37. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






38. Loaning or giving money to a business in orer to save it from bankruptcy.






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






40. 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.






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






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






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






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






45. A legal entity that is seperate from its owners.






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






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






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






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






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