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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. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






3. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






4. A tax deferred account that allows individuals to plan for their retirement.






5. The combining of two or more comapnies into one larger company.






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






7. 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.






8. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






10. The money left over when income exceeds expenditure.






11. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






15. 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.






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






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






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






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






20. The first time a company sells shares of its stock to the public.






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






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






23. Excess of expenses over revenues for a period.






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






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






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






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






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






29. Activities within an organization that can affect the accounting equation.






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






31. Journal entries that affect at least three accounts.






32. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






35. 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.






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






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






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






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






40. Expenses that remain the same regardless of the circumstances.






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






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






43. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






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






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






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






49. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






50. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.