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






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






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






4. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






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






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






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






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






12. Business owned by two or more people.






13. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






15. 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.






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






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






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






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






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






21. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






22. 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.






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






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






25. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






26. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






34. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






38. Individuals or organizations that owe money.






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






40. 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.






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






42. Uncertainty about expected return.






43. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






44. 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.






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






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






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






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






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






50. 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.