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






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






3. 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.






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






5. A corporation's basic ownership share.






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






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






8. 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.






9. 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.






10. Goals that are specific - measurable - attainable - realistic - and time bound.






11. Tool used to show the effects of transactions and events on individual accounts.






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






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






14. 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.






15. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






16. 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).






17. 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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






32. Rules that specify acceptable accounting practices.






33. Uncertainty about expected return.






34. 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.






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






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






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






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






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






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






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






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






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






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






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






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






47. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






49. Outflows or using up of assets as part of operations of business to generate sales.






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