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






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






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






4. Income from investments - including dividends - interest - or the sale of a property.






5. Excess of expenses over revenues for a period.






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






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






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






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






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






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






12. 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.






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






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






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






16. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






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






19. 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.






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






21. Individuals or organizations entitled to receive payments






22. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






37. Business owned by two or more people.






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






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






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






41. 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).






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






43. 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.






44. Assets put into the business by the owner.






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






46. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






49. 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.






50. The money left over when income exceeds expenditure.