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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. 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.






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






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






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






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






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






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






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






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






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






11. Individuals or organizations that owe money.






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






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






14. Uncertainty about expected return.






15. 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.






16. Journal entries that affect at least three accounts.






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






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






19. A corporation's basic ownership share.






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


21. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






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






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






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






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






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






28. Process of recording transactions in a journal.






29. 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






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






31. Business owned by two or more people.






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






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






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






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






36. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






38. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






41. Business owned by a single person.






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






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






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






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






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






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






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






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