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






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






3. A corporation's basic ownership share.






4. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






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






8. Rules that specify acceptable accounting practices.






9. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






11. 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.






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






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






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






15. The money left over when income exceeds expenditure.






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






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






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






19. Journal entries that affect at least three accounts.






20. 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.






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






22. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






23. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






24. 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.






25. 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.






26. Statements that show the effect of proposed transactions and events as if they had occurred.






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






28. Business owned by a single person.






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






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






31. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






32. 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.






33. 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.






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






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






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






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






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






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






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






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






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






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






44. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






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






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






50. Uncertainty about expected return.