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






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






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






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






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






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






7. 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






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






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






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






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






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






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






14. Excess of expenses over revenues for a period.






15. 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).






16. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






17. 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.






18. The money left over when income exceeds expenditure.






19. Journal entries that affect at least three accounts.






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






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






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






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






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






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






26. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






29. Independent group of full-time members responsible for setting accounting rules.






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






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






32. A corporation's basic ownership share.






33. 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.






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






35. 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.






36. 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.






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






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






39. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






40. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






49. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






50. 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).