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






2. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






4. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






6. 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.






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






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






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






10. 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).






11. A corporation's basic ownership share.






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






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






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






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






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






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






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






19. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






21. 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.






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 Expense Recognition Principle.






23. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






24. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






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

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27. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






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






31. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






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






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






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






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






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






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






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






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






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






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






44. Loaning or giving money to a business in orer to save it from bankruptcy.






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






46. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






48. 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).






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






50. Individuals or organizations that owe money.