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






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






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






5. Individuals or organizations entitled to receive payments






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






7. The money left over when income exceeds expenditure.






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






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






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






11. Excess of expenses over revenues for a period.






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






13. 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.






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






15. Uncertainty about expected return.






16. Business owned by a single person.






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






18. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






22. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






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






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






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






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






28. List of accounts and balances prepared before accounting adjustments are recorded and posted.






29. 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.






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






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






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






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






34. Business owned by two or more people.






35. Journal entries that affect at least three accounts.






36. 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.






37. Assets put into the business by the owner.






38. 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.






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






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






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






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






43. 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).






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






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






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






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






48. Individuals or organizations that owe money.






49. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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