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DSST Principles Of Finance

Subjects : dsst, business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






3. 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).






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






5. The value of a future cash steam discounted at the appropriate market interest rate.






6. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






7. 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.






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






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






10. 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.






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






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






13. Process of recording transactions in a journal.






14. 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.






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






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






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






18. Report of changes in equity over a period; adjusted for increases and for decreases.

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19. Assets put into the business by the owner.






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






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






22. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






26. Happenings that both affect an organization's financial position and can be reliably measured.






27. 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.






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






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






30. 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.






31. Individuals or organizations entitled to receive payments






32. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






33. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






36. 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).






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






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






39. Uncertainty about expected return.






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






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






42. Business owned by two or more people.






43. Individuals hired to review financial reports and information systems of organizations.






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






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






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






47. 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.






48. 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.






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






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







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