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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. 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.






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






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






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






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






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






7. 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.






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






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






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






11. 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).






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






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






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






15. 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.






16. The money left over when income exceeds expenditure.






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






18. 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.






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






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






21. Record containing all accounts (with amounts) for a business.






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






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






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






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






26. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






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






31. 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.






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






33. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






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






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






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






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






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






41. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






44. 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.






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






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






47. Assets put into the business by the owner.






48. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






49. Income that is available after all of the essential financial commitments have been paid.






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