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






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






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






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






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






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






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






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






9. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






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






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






13. The combining of two or more comapnies into one larger company.






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






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






16. An expense that changes from period to perio - such as food or gasoline costs.






17. 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






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






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






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






21. 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).






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






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






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






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






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






27. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






29. 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






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






31. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






32. 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.






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






34. 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.






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






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






37. Business owned by two or more people.






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






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






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






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






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






43. 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).






44. 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






45. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






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






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