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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. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






3. 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.






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






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






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






7. Assets put into the business by the owner.






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






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






10. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






12. Individuals or organizations entitled to receive payments






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






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






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

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16. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






18. Record containing all accounts (with amounts) for a business.






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






20. 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






21. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






24. A legal entity that is seperate from its owners.






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






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






27. 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






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






29. 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.






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






31. 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).






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






33. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






35. 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.






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






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






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






39. 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.






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






41. 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.






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






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






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






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






46. Individuals or organizations that owe money.






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






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






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






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