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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. 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






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






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






4. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






5. The money left over when income exceeds expenditure.






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






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






8. Rules that specify acceptable accounting practices.






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






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






11. A corporation's basic ownership share.






12. 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






13. Individuals or organizations entitled to receive payments






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






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






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






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






18. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






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






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






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






25. Journal entries that affect at least three accounts.






26. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






27. 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.






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






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






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






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






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






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






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






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






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






37. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






40. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






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






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






45. 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.






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






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

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






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






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