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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. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






2. 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.






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






4. 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.






5. Statements that show the effect of proposed transactions and events as if they had occurred.






6. Principle that assumes transactions and events can be expressed in money units.






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






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






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






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






11. 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.






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






13. Assets pulled out of the business by the owner.






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






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






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






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






18. 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






19. 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.






20. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






23. 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.






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






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






26. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






28. Assets put into the business by the owner.






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






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






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






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






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






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






35. Journal entries that affect at least three accounts.






36. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






38. 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






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






40. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






48. 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).






49. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






50. 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.