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






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






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






4. 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).






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






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






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






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






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






10. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






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






13. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






14. Assets put into the business by the owner.






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






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






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






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






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






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

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






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






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






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






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






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






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






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






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






30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






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






33. Process of recording transactions in a journal.






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






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






36. Tool used to show the effects of transactions and events on individual accounts.






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






38. 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.






39. 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.






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






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






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






43. 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.






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






45. 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.






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






47. Business owned by a single person.






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






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






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