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






2. Rules that specify acceptable accounting practices.






3. Individuals or organizations that owe money.






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






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






6. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






10. 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






11. 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






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






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






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






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






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






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






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






19. A corporation's basic ownership share.






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






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






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






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






24. 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.






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






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






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






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






29. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






30. 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.






31. Business owned by one person that is not organized as a corporation.






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






33. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






37. 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.






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






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






40. 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).






41. A loan that is backed by collateral such as cars - houses - or other assets.






42. 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).






43. 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.






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






45. Activities within an organization that can affect the accounting equation.






46. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






48. 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.






49. The money left over when income exceeds expenditure.






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