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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 one person that is not organized as a corporation.






2. 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.






3. Process of recording transactions in a journal.






4. Assets put into the business by the owner.






5. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






10. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






11. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






12. 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.






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






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






15. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






16. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






25. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






28. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






30. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






32. 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.






33. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






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






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






39. A corporation's basic ownership share.






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






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






42. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






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






46. Individuals or organizations entitled to receive payments






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






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






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






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