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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 recording transactions in a journal.






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






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






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






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






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






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






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






9. 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






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






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






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






13. 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






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






15. 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.






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






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






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






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






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






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






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






23. 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.






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






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






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






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






28. Individuals or organizations that owe money.






29. 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).






30. 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.






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






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






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






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






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






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






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






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






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






40. 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).






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






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






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






44. 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.






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






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






47. Assets put into the business by the owner.






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






49. 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.






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