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






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






3. Journal entries that affect at least three accounts.






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






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






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






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






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






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






10. 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.






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






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






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






14. 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.






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






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






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






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






19. 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.






20. 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






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






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






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






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






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






26. Owners of a corporation who usually receive dividends. Also called stockholders.






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






28. 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.






29. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






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






33. Business owned by a single person.






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






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






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






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






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






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






40. Individuals or organizations that owe money.






41. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






42. Individuals or organizations entitled to receive payments






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






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






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






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






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






48. 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.






49. Report of changes in equity over a period; adjusted for increases and for decreases.

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