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






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






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






4. Assets put into the business by the owner.






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






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






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






8. 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.






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






10. 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






11. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






14. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






16. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






19. 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.






20. Journal entries that affect at least three accounts.






21. 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.






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






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






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






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






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






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






28. 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.






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






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






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






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






33. Uncertainty about expected return.






34. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






37. Report of changes in equity over a period; adjusted for increases and for decreases.

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






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






40. Excess of expenses over revenues for a period.






41. 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.






42. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






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






46. Expenses that remain the same regardless of the circumstances.






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






48. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






49. 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.






50. Process of recording transactions in a journal.