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






2. Individuals or organizations entitled to receive payments






3. 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).






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






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






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






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






8. 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.






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






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






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






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






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






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






15. 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.






16. 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.






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






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






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






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






21. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






22. Business owned by two or more people.






23. Process of recording transactions in a journal.






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






25. Rules that specify acceptable accounting practices.






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






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






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






29. Individuals or organizations that owe money.






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






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






32. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






33. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






36. 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






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






38. A corporation's basic ownership share.






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






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






41. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






43. Assets put into the business by the owner.






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






45. 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.






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






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






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






49. 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.






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