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






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






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






4. 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.






5. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






7. The principle prescribing that revenue is recognized when earned.






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






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






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






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






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






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






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






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






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






17. Assets put into the business by the owner.






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






19. A corporation's basic ownership share.






20. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






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






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






26. Gross increase in equity from a company's business activities that earn income.






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






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






29. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






30. Individuals or organizations that owe money.






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






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






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






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






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






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






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






38. 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.






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






40. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






44. Excess of expenses over revenues for a period.






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






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






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






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






49. 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.






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