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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. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






2. Journal entries that affect at least three accounts.






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






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






5. A corporation's basic ownership share.






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






7. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






8. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






10. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






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






15. 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.






16. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






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






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






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






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






23. 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.






24. 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.






25. 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).






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






27. 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






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






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






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






31. 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.






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






33. The money left over when income exceeds expenditure.






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






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






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






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






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






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






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






41. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






42. Business owned by one person that is not organized as a corporation.






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






44. 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.






45. Excess of expenses over revenues for a period.






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






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






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






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






50. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).