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






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






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






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






5. Excess of expenses over revenues for a period.






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






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






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






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






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






11. 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.






12. A corporation's basic ownership share.






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






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






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






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






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






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






19. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






21. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






22. 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.






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






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






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






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






27. Gross increase in equity from a company's business activities that earn income.






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






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






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






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






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






33. Monies (or sums of money) received from an investment; often in percent form.






34. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






35. Report of changes in equity over a period; adjusted for increases and for decreases.

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






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






38. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






39. 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.






40. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






43. 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






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






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






46. 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.






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






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






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






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