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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. The money left over when income exceeds expenditure.






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






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






4. 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.






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






6. 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.






7. Outflows or using up of assets as part of operations of business to generate sales.






8. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






10. 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).






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






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






13. Journal entries that affect at least three accounts.






14. 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.






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






16. Excess of expenses over revenues for a period.






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






18. 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.






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






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






21. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






22. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






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






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






29. Individuals or organizations entitled to receive payments






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






31. Business owned by a single person.






32. Process of recording transactions in a journal.






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






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






35. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






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






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






40. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






41. Rules that specify acceptable accounting practices.






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






43. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






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






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






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






49. A corporation's basic ownership share.






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