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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. Uncertainty about expected return.






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






3. Individuals or organizations that owe money.






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






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






6. Individuals or organizations entitled to receive payments






7. Owners of a corporation who usually receive dividends. Also called stockholders.






8. 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.






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






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






11. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






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






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






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






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






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






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






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






19. 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.






20. Excess of expenses over revenues for a period.






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






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






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






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






25. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






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






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






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






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






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






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






34. 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.






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






36. 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).






37. 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.






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






39. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






43. Persons using accounting information who are directly involved in managing the organization.






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






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

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






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






48. The money left over when income exceeds expenditure.






49. Assets put into the business by the owner.






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







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