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






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






3. 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.






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






5. 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.






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






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






8. 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.






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






10. Activities within an organization that can affect the accounting equation.






11. Individuals or organizations that owe money.






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






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






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






15. Goals that are specific - measurable - attainable - realistic - and time bound.






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






17. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






19. 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






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






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






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






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






24. Rules that specify acceptable accounting practices.






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






26. 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.






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






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






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






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






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






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






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






34. 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.






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






36. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






38. Business owned by a single person.






39. Journal entries that affect at least three accounts.






40. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






42. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






45. A corporation's basic ownership share.






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






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






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






49. Individuals hired to review financial reports and information systems of organizations.






50. Business owned by two or more people.







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