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






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






3. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






10. 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.






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






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






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






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






15. 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.






16. 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.






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






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






19. Uncertainty about expected return.






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






21. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






23. A corporation's basic ownership share.






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






25. 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.






26. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






27. 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.






28. 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.






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






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






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






32. The money left over when income exceeds expenditure.






33. Business owned by two or more people.






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






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






36. 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.






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






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






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






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






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






42. 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.






43. Income that is available after all of the essential financial commitments have been paid.






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






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






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






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






48. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






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