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






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






3. The money left over when income exceeds expenditure.






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






5. Individuals or organizations that owe money.






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






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






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






10. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






11. Business owned by two or more people.






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






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






14. Excess of expenses over revenues for a period.






15. 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.






16. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






18. 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.






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






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






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






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






23. Uncertainty about expected return.






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






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






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






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






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






29. 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.






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






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






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






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






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






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






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






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






38. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






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






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






44. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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


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






47. 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.






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






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






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