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






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






3. Journal entries that affect at least three accounts.






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






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






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






7. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






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






10. Assets put into the business by the owner.






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






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






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






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






15. 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.






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






17. The money left over when income exceeds expenditure.






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






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






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






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






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






23. Individuals or organizations that owe money.






24. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






25. 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.






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






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






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






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






30. A corporation's basic ownership share.






31. 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.






32. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






33. Uncertainty about expected return.






34. 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.






35. Loaning or giving money to a business in orer to save it from bankruptcy.






36. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






37. 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).






38. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






39. Independent group of full-time members responsible for setting accounting rules.






40. 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.






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






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






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






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






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






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






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






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

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






50. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.