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






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






3. The money left over when income exceeds expenditure.






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






5. 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






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






7. Business owned by two or more people.






8. Exchanges of economic value between one entity and another entity.






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






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






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






13. 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.






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






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






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






17. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






18. A loan that is backed by collateral such as cars - houses - or other assets.






19. 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.






20. 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.






21. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






22. 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.






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






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






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






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






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






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






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






30. Monies (or sums of money) received from an investment; often in percent form.






31. 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.






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






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






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






35. Rules that specify acceptable accounting practices.






36. 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






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






38. 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.






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






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






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






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






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






44. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






48. A corporation's basic ownership share.






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






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