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






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






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






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






5. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






7. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






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






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






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






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






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






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






20. Individuals hired to review financial reports and information systems of organizations.






21. 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.






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






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






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






25. A corporation's basic ownership share.






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






27. All purpose journal for recording the debits and credits of transactions and events.






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






29. 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.






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






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






32. Assets put into the business by the owner.






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






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






35. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






37. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






40. 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.






41. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






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






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






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






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






48. Process of recording transactions in a journal.






49. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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