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






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






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






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






5. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






6. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






7. 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.






8. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






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






12. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






13. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






16. 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.






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






18. Business owned by two or more people.






19. Excess of expenses over revenues for a period.






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






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






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






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






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






25. Uncertainty about expected return.






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






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






28. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






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






32. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






33. Gross increase in equity from a company's business activities that earn income.






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






35. Activities within an organization that can affect the accounting equation.






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






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






38. Rules that specify acceptable accounting practices.






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






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






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






42. 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.






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






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






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






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






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






48. 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






49. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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