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






2. 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.






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






4. 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.






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






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






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






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






9. Journal entries that affect at least three accounts.






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






11. Assets put into the business by the owner.






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






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






14. 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.






15. 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.






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






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






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






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






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






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






22. Income that is available after all of the essential financial commitments have been paid.






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






24. 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.






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






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






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






28. Rules that specify acceptable accounting practices.






29. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






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






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






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






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






35. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






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






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






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






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






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






43. 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






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






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






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






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






48. A corporation's basic ownership share.






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






50. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.







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