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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. 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.






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






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






4. Independent group of full-time members responsible for setting accounting rules.






5. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






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






8. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






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






12. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






14. Process of recording transactions in a journal.






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






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






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






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






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






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






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






22. Rules that specify acceptable accounting practices.






23. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






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






27. 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.






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






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






30. 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).






31. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






33. Excess of expenses over revenues for a period.






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






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






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






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






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






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






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






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






42. Persons using accounting information who are not directly involved in running the organization.






43. 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.






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






45. Individuals or organizations that owe money.






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






47. 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.






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






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






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