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






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






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






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






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






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






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

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8. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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






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






13. Statements that show the effect of proposed transactions and events as if they had occurred.






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






15. 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.






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






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






18. Assets put into the business by the owner.






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






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






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






22. 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).






23. 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.






24. 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.






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






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






27. Rules that specify acceptable accounting practices.






28. 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.






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






30. Process of recording transactions in a journal.






31. 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.






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






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






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






35. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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






39. An expense that changes from period to perio - such as food or gasoline costs.






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






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






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






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






44. 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.






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






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






47. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






48. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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