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






2. Assets put into the business by the owner.






3. 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.






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






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






6. 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.






7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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






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






12. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






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






15. Area of accounting aimed mainly at serving external users.






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






18. Uncertainty about expected return.






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






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






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






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






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

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24. Business owned by a single person.






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






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






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






28. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






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






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






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






34. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






36. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






37. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






40. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






42. Business owned by two or more people.






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






44. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






45. The money left over when income exceeds expenditure.






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






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






48. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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