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






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






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






4. Excess of expenses over revenues for a period.






5. Process of recording transactions in a journal.






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






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






8. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






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






12. 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).






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






14. 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.






15. Individuals or organizations that owe money.






16. A corporation's basic ownership share.






17. 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.






18. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






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






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






24. Business owned by a single person.






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






26. The value of a future cash steam discounted at the appropriate market interest rate.






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






28. 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.






29. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






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






38. Journal entries that affect at least three accounts.






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






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






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






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






43. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






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






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






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






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






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






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