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






2. 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.






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






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






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






6. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






9. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






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






13. 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).






14. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






16. Rules that specify acceptable accounting practices.






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






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






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






20. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






21. 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.






22. Individuals or organizations entitled to receive payments






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






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






25. Assets put into the business by the owner.






26. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






27. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






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






31. List of accounts and balances prepared before accounting adjustments are recorded and posted.






32. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






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






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






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






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






39. All purpose journal for recording the debits and credits of transactions and events.






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






41. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






42. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






44. 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.






45. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






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






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






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






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