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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. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






2. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






4. Individuals hired to review financial reports and information systems of organizations.






5. Individuals or organizations entitled to receive payments






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






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






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






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






10. A tax deferred account that allows individuals to plan for their retirement.






11. 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.






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






13. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






15. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






16. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






20. Process of recording transactions in a journal.






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






22. Assets put into the business by the owner.






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






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






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






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






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






28. List of accounts used by a company' includes and identification number for each account.






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






30. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






33. 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.






34. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






35. 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






36. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






38. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






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






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






43. 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).






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






45. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






46. Activities within an organization that can affect the accounting equation.






47. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






49. 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






50. 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