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






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






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






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






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






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






7. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






11. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






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






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






16. Assets put into the business by the owner.






17. Principle that assumes transactions and events can be expressed in money units.






18. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






21. 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.






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






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






24. 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).






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






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






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






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






29. 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.






30. Excess of expenses over revenues for a period.






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






32. Length of time covered by financial statements; also called reporting period.






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






34. Individuals or organizations that owe money.






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






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






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






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






39. Individuals or organizations entitled to receive payments






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






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






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






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






44. 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.






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






46. 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.






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






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






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






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