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

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






3. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






5. A legal entity that is seperate from its owners.






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






7. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






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






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






13. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






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






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






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 Expense Recognition Principle.






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






19. Business owned by a single person.






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






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






22. 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.






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






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






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






26. 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.






27. The money left over when income exceeds expenditure.






28. Individuals or organizations that owe money.






29. 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.






30. 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.






31. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






32. Assets put into the business by the owner.






33. Business owned by two or more people.






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






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






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






37. Length of time covered by financial statements; also called reporting period.






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






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






40. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






41. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






42. 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.






43. 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.






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






45. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






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






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






49. 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).






50. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






Can you answer 50 questions in 15 minutes?



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