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






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






3. 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.






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






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






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






7. 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.






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






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






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






11. 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






12. 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.






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






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






15. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






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






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






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






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






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






25. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






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






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






30. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






31. Assets put into the business by the owner.






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






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






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

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35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






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






40. A corporation's basic ownership share.






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






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






43. 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).






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






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






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






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






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






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






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







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