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






2. Assets put into the business by the owner.






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






4. Uncertainty about expected return.






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






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






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






8. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






10. 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.






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






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






13. Business owned by two or more people.






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






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






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






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






18. 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.






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






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






21. Journal entries that affect at least three accounts.






22. 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.






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






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






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






26. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






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






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






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






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






35. Individuals or organizations entitled to receive payments






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






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






38. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






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






42. 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).






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






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






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






46. 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.






47. 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.






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






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






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