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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 entries that affect at least three accounts.






2. 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.






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






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






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






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






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






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






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






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






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






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






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






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






15. 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.






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






17. 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.






18. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






19. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






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






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






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






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






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






26. 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.






27. 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).






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






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






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






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






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






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






34. 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.






35. 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






36. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






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






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






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






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






45. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






46. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






48. The combining of two or more comapnies into one larger company.






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






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






Can you answer 50 questions in 15 minutes?



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