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






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






3. Expenses that remain the same regardless of the circumstances.






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






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






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






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






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






9. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






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






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






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






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 Matching Principle.






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






17. 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






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






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






20. Business owned by a single person.






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






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






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






24. Happenings that both affect an organization's financial position and can be reliably measured.






25. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






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






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






29. Business owned by two or more people.






30. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






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






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






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






35. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






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






39. 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).






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






41. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






42. Assets put into the business by the owner.






43. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






44. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






46. 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.






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






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






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






50. Tool used to show the effects of transactions and events on individual accounts.