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






2. Owners of a corporation who usually receive dividends. Also called shareholders.






3. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






6. 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.






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






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






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






10. 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).






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






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






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






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






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






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






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






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






19. 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.






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






21. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






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






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






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






27. The money left over when income exceeds expenditure.






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






29. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






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






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






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






34. Excess of expenses over revenues for a period.






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






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






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






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






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






41. 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.






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






43. Persons using accounting information who are directly involved in managing the organization.






44. 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.






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






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






47. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






50. 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.