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






2. Business owned by one person that is not organized as a corporation.






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






4. 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.






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






6. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






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






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






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






12. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






14. 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).






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






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






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






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






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






21. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






22. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






23. Activities within an organization that can affect the accounting equation.






24. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






25. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






29. Individuals or organizations that owe money.






30. Owners of a corporation who usually receive dividends. Also called stockholders.






31. 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.






32. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






33. 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).






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






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






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






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






38. 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.






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






40. 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.






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






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






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






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






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






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






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






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






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






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







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