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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. 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).






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






3. 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.






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






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






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






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






8. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






11. The money left over when income exceeds expenditure.






12. 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.






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






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






15. 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.






16. Individuals hired to review financial reports and information systems of organizations.






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






18. 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.






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






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






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






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






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






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






25. Journal entries that affect at least three accounts.






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






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






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






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






30. 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.






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






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






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






34. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






38. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






39. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






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






42. 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.






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






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






45. 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.






46. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






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






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






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






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