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






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






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






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






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






6. Assets put into the business by the owner.






7. 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.






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






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






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






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






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






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






14. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






17. 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






18. 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.






19. Exchanges of economic value between one entity and another entity.






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






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






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






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






24. Process of recording transactions in a journal.






25. Business owned by a single person.






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






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






28. 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.






29. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






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






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






35. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






37. Business owned by two or more people.






38. Individuals or organizations that owe money.






39. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






40. Individuals or organizations entitled to receive payments






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






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






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






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






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






46. A corporation's basic ownership share.






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






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






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






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







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