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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. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






3. 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.






4. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






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






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






13. 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.






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






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






16. A legal entity that is seperate from its owners.






17. 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).






18. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






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






22. Excess of expenses over revenues for a period.






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






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






25. Activities within an organization that can affect the accounting equation.






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






27. Rules that specify acceptable accounting practices.






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






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






30. 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.






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






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






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






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






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






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






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






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






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






40. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






41. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






43. 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.






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






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






46. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






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






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