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






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






3. 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.






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






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






6. Journal entries that affect at least three accounts.






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






8. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






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






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






13. 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






14. Uncertainty about expected return.






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






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






17. 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.






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






19. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






20. The first time a company sells shares of its stock to the public.






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






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






23. Rules that specify acceptable accounting practices.






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






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






26. Business owned by two or more people.






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






28. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






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






34. 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.






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






36. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






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






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






40. 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.






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






42. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






44. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






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






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






48. 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.






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






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