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






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






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






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






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






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






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






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






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






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






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






12. 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.






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






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






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






16. 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






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






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






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






20. Assets put into the business by the owner.






21. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






23. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






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

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27. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






28. 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.






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






30. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






31. 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.






32. 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.






33. Journal entries that affect at least three accounts.






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






35. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






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






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






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






40. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






42. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






43. Activities within an organization that can affect the accounting equation.






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






45. Uncertainty about expected return.






46. 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.






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






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






49. The money left over when income exceeds expenditure.






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