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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 earned as a result of the expenses.






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






3. Income that is available after all of the essential financial commitments have been paid.






4. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






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






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






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






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






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






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






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






13. Individuals or organizations entitled to receive payments






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






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






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






17. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






18. 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.






19. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






23. Process of recording transactions in a journal.






24. Gross increase in equity from a company's business activities that earn income.






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






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






27. Business owned by a single person.






28. 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.






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






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






31. 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.






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






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






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






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






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






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






38. A written framework to guide the development - preparation - and interpretation of financial accounting information.






39. 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






40. 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).






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






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






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






44. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






47. 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.






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






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






50. 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.