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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. 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.






2. 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






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






4. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






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






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






10. Independent group of full-time members responsible for setting accounting rules.






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






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






13. 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.






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






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






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






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






18. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






19. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






21. The money left over when income exceeds expenditure.






22. 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.






23. 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






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






25. List of accounts and balances prepared after period-end adjustments are recorded and posted.






26. Business owned by a single person.






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






28. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






31. Assets put into the business by the owner.






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






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






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






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






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






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

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






39. 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.






40. A corporation's basic ownership share.






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






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






43. 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.






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






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






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






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






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






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






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