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






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






3. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






6. 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.






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






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






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






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






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






12. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






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






15. Difference between total debits and total credits (including the beginning balance) for an account.






16. 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.






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






18. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






19. 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






20. 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






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






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






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






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






25. Uncertainty about expected return.






26. Individuals or organizations that owe money.






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






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






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






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






31. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






32. Excess of expenses over revenues for a period.






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






34. Assets put into the business by the owner.






35. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






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






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






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






42. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






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






46. A corporation's basic ownership share.






47. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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