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






2. Business owned by a single person.






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






4. Assets put into the business by the owner.






5. Difference between total debits and total credits (including the beginning balance) for an account.






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






7. 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).






8. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






11. A corporation's basic ownership share.






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






13. Journal entries that affect at least three accounts.






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






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






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






17. 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.






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






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






20. 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.






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






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






23. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






25. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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






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






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






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






32. 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






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






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






35. 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.






36. Excess of expenses over revenues for a period.






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






38. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






41. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






44. 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.






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






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






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






48. Goals that are specific - measurable - attainable - realistic - and time bound.






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

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