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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 a single person.






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






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






4. Business owned by two or more people.






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






6. Individuals or organizations that owe money.






7. 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.






8. The value of a future cash steam discounted at the appropriate market interest rate.






9. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






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






13. Outflows or using up of assets as part of operations of business to generate sales.






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






15. Rules that specify acceptable accounting practices.






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






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






18. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






20. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






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






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






24. 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.






25. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






27. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






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






30. 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.






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






32. Goals that are specific - measurable - attainable - realistic - and time bound.






33. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






35. Income from investments - including dividends - interest - or the sale of a property.






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






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






38. Happenings that both affect an organization's financial position and can be reliably measured.






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






40. Income that is available after all of the essential financial commitments have been paid.






41. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






42. Excess of expenses over revenues for a period.






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






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






45. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






46. The money left over when income exceeds expenditure.






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






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






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






50. 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).







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