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






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






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






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






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






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






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






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






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






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






11. 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.






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






13. 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.






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






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






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






17. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






18. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






19. 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.






20. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






21. Uncertainty about expected return.






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






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






24. Business owned by two or more people.






25. 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






26. Individuals or organizations that owe money.






27. Gross increase in equity from a company's business activities that earn income.






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






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






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






32. 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.






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






34. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






36. Business owned by a single person.






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






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






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






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






41. 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.






42. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






43. The money left over when income exceeds expenditure.






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






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






46. 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).






47. 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.






48. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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

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50. Assets put into the business by the owner.