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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. Journal entries that affect at least three accounts.






2. 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






3. 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.






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






5. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






6. 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.






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






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






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






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






11. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






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






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






15. Assets put into the business by the owner.






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






17. 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






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






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






21. Report of changes in equity over a period; adjusted for increases and for decreases.

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






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






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






25. A corporation's basic ownership share.






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






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






28. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






31. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






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






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






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






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






39. Difference between total debits and total credits (including the beginning balance) for an account.






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






41. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






44. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






45. Rules that specify acceptable accounting practices.






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






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






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






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






50. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.