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






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






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






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






5. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






8. Uncertainty about expected return.






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






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






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






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






13. 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






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






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






16. Individuals or organizations that owe money.






17. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






20. Owners of a corporation who usually receive dividends. Also called stockholders.






21. Business owned by a single person.






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






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 Matching Principle.






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






25. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






28. 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.






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






30. Assets put into the business by the owner.






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






32. 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.






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






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






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






36. Persons using accounting information who are not directly involved in running the organization.






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






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






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






40. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






41. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






42. 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.






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






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






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






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






47. Excess of expenses over revenues for a period.






48. Individuals or organizations entitled to receive payments






49. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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