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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. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






2. 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.






3. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






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






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






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






8. Process of recording transactions in a journal.






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






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






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






12. Record containing all accounts (with amounts) for a business.






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






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






15. Area of accounting aimed mainly at serving external users.






16. Individuals or organizations that owe money.






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






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






19. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






21. 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.






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






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






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






25. 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).






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






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






28. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






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






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






32. The money left over when income exceeds expenditure.






33. 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.






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






35. 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






36. Uncertainty about expected return.






37. Business owned by a single person.






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






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






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






41. Excess of expenses over revenues for a period.






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






43. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






44. 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.






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






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






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






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






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






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