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DSST Principles Of Finance
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Subjects
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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. Persons using accounting information who are not directly involved in running the organization.
Return
External Users
Financial Accounting
Statement of Owner's Equity
2. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Accrued Expenses
Acquisition
Shares
Debt Ratio
3. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Profit Margin
Income Statement
Unearned Revenue
4. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Source Documents
Expense Recognition Principle
Expenses
Working Papers
5. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Internal transactions
Contra Account
Adjusting Entry
6. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Bookkeeping
Stock
Adjusted Trial Balance
Internal transactions
7. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Financial Accounting Standards Board
Debt Ratio
Liabilities
Partnership
8. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Owner Investment
Owner - Capital
Posting Reference Column
9. 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.
Working Papers
Statement of Cash Flows
Balance Column Account
Liabilities
10. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Plant Assets
Securities
Unearned Revenue
Credit
11. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Materiality Constraint
Equity
Balance Column Account
12. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Generally Accepted Accounting Principles
Matching Principle (or Expense Recognition Principle)
Internal users
Accounting Equation
13. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Financial Accounting
Accrual Basis Accounting
Permanent Accounts
Current Assets
14. An expense that changes from period to perio - such as food or gasoline costs.
Debtors
Varaiable Expense
Closing process
IPO
15. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Deficit
Partnership Agreement
Stockholders
Unearned Revenues
16. Goals that are specific - measurable - attainable - realistic - and time bound.
Compound Journal Entries
Common Stock
Equity
SMART Goal
17. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Profit Margin
Time Period Assumptions
Bonds
Ethics
18. 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.
Temporary Accounts
Net Loss
Matching Principle (or Expense Recognition Principle)
Matching Principle
19. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Present Value
SEC (Securites and Exchange Commision)
Revenues
Recordkeeping
20. 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
Common Stock
Varaiable Expense
Temporary Accounts
Sarbanes-Oxley Act (SOX)
21. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Shares
Closing process
Work Sheet
Fixed Expense
22. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Temporary Accounts
Source Documents
Passive Income
Expense Recognition Principle
23. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Prepaid Expenses
External Transactions
Posting
Common Stock
24. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Materiality Constraint
Partnership Agreement
Accounting Cycle
Cost Principle
25. Owners of a corporation who usually receive dividends. Also called stockholders.
Shareholders
Compound Journal Entries
Secured Loan
Adjusting Entry
26. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Natural Business Years
Current Liabilities
Accounting
Fiscal Year
27. 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
Annual Financial Statements
Interim Financial Statements
Securities
Preferred Stock
28. Process of recording transactions in a journal.
Passive Income
Journalizing
Debit
Partnership
29. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Federal Reserve System
Shareholders
Risk
Monetary Unit Assumption
30. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Straight-line Depreciation Method
Current Liabilities
Contra Account
Events
31. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Audit
Internal users
Journal
Net Loss
32. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Accounting Cycle
Expense Recognition Principle
Materiality Constraint
Portfolio Income
33. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Risk
T Account
Accounting Period
34. Individuals or organizations entitled to receive payments
Revenue Recognition Principle
Adjusted Trial Balance
Creditors
Journalizing
35. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Internal transactions
IPO
Managerial Accounting
36. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Plant Assets
Closing Entries
Sole Propietorship
Intangible assets
37. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Accounting
Pro Forma Financial Statement
Revenues
38. Principle that assumes transactions and events can be expressed in money units.
Accrual Basis Accounting
Posting Reference Column
Monetary Unit Assumption
Expenses
39. Activities within an organization that can affect the accounting equation.
Internal transactions
Straight-line Depreciation Method
Accrual Basis Accounting
Audit
40. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Intangible assets
Liabilities
Accounting Equation
Natural Business Years
41. Income from investments - including dividends - interest - or the sale of a property.
SEC (Securites and Exchange Commision)
Portfolio Income
Contra Account
Present Value
42. Individuals hired to review financial reports and information systems of organizations.
Bookkeeping
Account
Posting
Auditors
43. Individuals or organizations that owe money.
Statement of Owner's Equity
Debtors
Liabilities
Acquisition
44. The combining of two or more comapnies into one larger company.
Business Entity Assumption
Mergers
Recordkeeping
Monetary Unit Assumption
45. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Debt Ratio
Statement of Owner's Equity
Shareholders
Return on Assets
46. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Source Documents
Federal Reserve System
Corporation
Owner - Capital
47. The money left over when income exceeds expenditure.
Surplus
Income Statement
Accounting
Stockholders
48. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
IRA (Individual Retirement Account)
Annual Financial Statements
Events
Sole Propietorship
49. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Debtors
Discretionary Income
Contra Account
Measurement Principle
50. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.
External Users
Ponzi Scheme
NYSE (New York Stock Exchange)
General Journal
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