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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. 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.






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






3. Rules that specify acceptable accounting practices.






4. 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






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






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






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






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






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






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






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






12. 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.






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






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

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






16. 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.






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






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






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






20. A legal entity that is seperate from its owners.






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






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






23. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






25. 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.






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






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






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






29. The money left over when income exceeds expenditure.






30. 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.






31. 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






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






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






34. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






36. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






38. Exchanges of economic value between one entity and another entity.






39. Journal entries that affect at least three accounts.






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






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






43. The principle prescribing that revenue is recognized when earned.






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






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






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






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






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






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






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