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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. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






6. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






8. 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.






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






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






11. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






13. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






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






17. 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.






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






19. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






21. Individuals or organizations entitled to receive payments






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






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






24. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






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






28. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






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






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






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






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






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






37. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






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






46. Journal entries that affect at least three accounts.






47. 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






48. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






50. Rules that specify acceptable accounting practices.