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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. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






4. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






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






9. 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.






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






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






12. 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.






13. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






17. Business owned by a single person.






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






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






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






21. Process of recording transactions in a journal.






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






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






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






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






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






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






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

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






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






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






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






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






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






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






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






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






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






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






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






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






42. 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.






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






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






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






46. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






48. 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.






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






50. 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.