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






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






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






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






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






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






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






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






9. 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.






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

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11. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






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






16. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






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






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






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






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






23. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






25. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






28. 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.






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






30. Process of recording transactions in a journal.






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






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






33. The money left over when income exceeds expenditure.






34. Excess of expenses over revenues for a period.






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






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






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






38. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






40. Area of accounting aimed mainly at serving external users.






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






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






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. Individuals or organizations that owe money.






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






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






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






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






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






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