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






2. List of accounts used by a company' includes and identification number for each account.






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






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






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






6. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






8. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






9. Excess of expenses over revenues for a period.






10. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






13. 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






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






15. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






17. 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.






18. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






19. Uncertainty about expected return.






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






21. 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.






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






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






24. A corporation's basic ownership share.






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






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






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






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






29. A loan that is backed by collateral such as cars - houses - or other assets.






30. Assets put into the business by the owner.






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






32. Business owned by two or more people.






33. 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.






34. 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.






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






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






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






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






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






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






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






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






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






44. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






46. The twelve month period that ends when a company's sales activities are at their lowest point.






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






48. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






49. The money left over when income exceeds expenditure.






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