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






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






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






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






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






6. Individuals or organizations that owe money.






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






8. 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.






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. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






13. Excess of expenses over revenues for a period.






14. 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.






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






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






17. Process of recording transactions in a journal.






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






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






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






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






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






23. 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






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






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






26. 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.






27. 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.






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






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






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






31. Individuals or organizations entitled to receive payments






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






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






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






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






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






38. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






39. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






40. Area of accounting aimed mainly at serving the decision-making needs of internal users.






41. Rules that specify acceptable accounting practices.






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






43. Business owned by two or more people.






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






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






46. 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.






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






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






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






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