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






2. 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.






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






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






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






6. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






7. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






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






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






12. Assets put into the business by the owner.






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






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






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






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






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






18. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






21. A corporation's basic ownership share.






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






23. 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






24. Record containing all accounts (with amounts) for a business.






25. 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.






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






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






28. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






29. 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






30. 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.






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






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






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






34. 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.






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






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






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






38. 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






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






40. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






41. The principle prescribing that revenue is recognized when earned.






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






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






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






45. Uncertainty about expected return.






46. Excess of expenses over revenues for a period.






47. 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).






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






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






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