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






2. Outflows or using up of assets as part of operations of business to generate sales.






3. Assets pulled out of the business by the owner.






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






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






6. 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.






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






8. The first time a company sells shares of its stock to the public.






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






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






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






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






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






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






15. Process of recording transactions in a journal.






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






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






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






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






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






21. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






23. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






24. Business owned by a single person.






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






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






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






28. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






31. 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.






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






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






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






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






36. A tax deferred account that allows individuals to plan for their retirement.






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






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






39. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






40. 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.






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






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






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






44. Principle that assumes transactions and events can be expressed in money units.






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






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






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






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






49. Assets put into the business by the owner.






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