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






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






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






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






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






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






7. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






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






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






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






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






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






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






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






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






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






19. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






21. Rules that specify acceptable accounting practices.






22. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






24. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






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






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






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






29. Uncertainty about expected return.






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






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






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






33. 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.






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


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






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






37. The combining of two or more comapnies into one larger company.






38. 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).






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






40. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






42. Business owned by two or more people.






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






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






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






47. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






48. 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






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






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