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






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






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






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






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






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






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






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






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






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






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






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






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






14. 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.






15. Assets pulled out of the business by the owner.






16. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






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






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






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






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






22. 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).






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






24. 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.






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






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






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






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






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






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






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






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






33. A loan that is backed by collateral such as cars - houses - or other assets.






34. Individuals or organizations that owe money.






35. A corporation's basic ownership share.






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






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






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






39. Record containing all accounts (with amounts) for a business.






40. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






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






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






45. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






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






48. 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.






49. Persons using accounting information who are not directly involved in running the organization.






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