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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 directly involved in managing the organization.






2. 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).






3. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






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






7. 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






8. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






9. 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.






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






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






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






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






14. Assets put into the business by the owner.






15. Process of recording transactions in a journal.






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






17. 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.






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






19. The money left over when income exceeds expenditure.






20. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






21. 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.






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






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






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






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






26. 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.






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






28. Difference between total debits and total credits (including the beginning balance) for an account.






29. 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.






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






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






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






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






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






35. 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.






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






37. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






39. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






40. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






43. Individuals or organizations that owe money.






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






45. Business owned by two or more people.






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






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






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






49. Business owned by a single person.






50. Individuals or organizations entitled to receive payments