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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. Outflows or using up of assets as part of operations of business to generate sales.






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






3. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






4. Journal entries that affect at least three accounts.






5. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






8. 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.






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






10. Individuals or organizations entitled to receive payments






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






12. 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.






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






14. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






16. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






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






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






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






21. 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.






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






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






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






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






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






27. Business owned by two or more people.






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






29. 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.






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






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






32. List of accounts used by a company' includes and identification number for each account.






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






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






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






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






37. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






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






41. Income that is available after all of the essential financial commitments have been paid.






42. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






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






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






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






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






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