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






2. Excess of expenses over revenues for a period.






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






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






5. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






6. 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






7. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






8. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






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






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






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






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






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






17. 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.






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






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






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






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






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






23. 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.






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






25. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






27. 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.






28. 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.






29. A corporation's basic ownership share.






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






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






32. Exchanges of economic value between one entity and another entity.






33. Business owned by a single person.






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






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






36. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






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






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






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






42. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






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






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






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






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






49. 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).






50. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity