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






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






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






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






5. 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.






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






7. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






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






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






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






12. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






13. 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.






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






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






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






17. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






18. 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.






19. 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.






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






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






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






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






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






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






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






27. Excess of expenses over revenues for a period.






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






29. 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.






30. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






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






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






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






37. 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.






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






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






40. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






41. Accounting information is based on cost with potential subsequent adjustments to fair value.






42. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






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






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






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






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