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






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






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






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






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






6. Assets put into the business by the owner.






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






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






9. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






10. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






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






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






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






16. 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.






17. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






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






21. 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.






22. Owners of a corporation who usually receive dividends. Also called shareholders.






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






24. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






26. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






28. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






37. Business owned by a single person.






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






39. Rules that specify acceptable accounting practices.






40. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






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






45. Individuals or organizations entitled to receive payments






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






47. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






49. Uncertainty about expected return.






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