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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. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






3. Individuals or organizations entitled to receive payments






4. 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.






5. 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.






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






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






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






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






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






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






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






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






14. Uncertainty about expected return.






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






16. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






18. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






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






23. List of accounts used by a company' includes and identification number for each account.






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






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






26. 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.






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






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






29. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






30. Business owned by two or more people.






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






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






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






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






35. 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.






36. Business owned by a single person.






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






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






39. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






40. Process of recording transactions in a journal.






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






42. 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.






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






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






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






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






47. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






49. 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.






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