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






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






3. Business owned by a single person.






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






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






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






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






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






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






10. Owners of a corporation who usually receive dividends. Also called stockholders.






11. 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.






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






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






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






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






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






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






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






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






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






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






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






23. Business owned by two or more people.






24. Rules that specify acceptable accounting practices.






25. Area of accounting aimed mainly at serving the decision-making needs of internal users.






26. 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.






27. The money left over when income exceeds expenditure.






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






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






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






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






32. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






33. 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.






34. 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.






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






36. 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.






37. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






38. 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.






39. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






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






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






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






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






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






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






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






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






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