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






2. 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.






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






4. 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.






5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






6. Uncertainty about expected return.






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






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






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






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






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






13. 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.






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






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






16. Business owned by a single person.






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






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






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






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






21. The principle prescribing that revenue is recognized when earned.






22. 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.






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






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






25. 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.






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






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






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






29. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






32. Assets pulled out of the business by the owner.






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






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






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






36. Process of recording transactions in a journal.






37. 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.






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






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






40. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






42. The money left over when income exceeds expenditure.






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






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






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






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






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






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






49. Business owned by two or more people.






50. A loan that is not backed by collateral - but by the promise of the borrower to repay it.