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






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






3. 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).






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






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






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






7. Rules that specify acceptable accounting practices.






8. 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.






9. Income that is available after all of the essential financial commitments have been paid.






10. A tax deferred account that allows individuals to plan for their retirement.






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






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






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






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






15. 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






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






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






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






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






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






21. 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.






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






23. 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.






24. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






27. 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






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






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






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






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






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






33. Activities within an organization that can affect the accounting equation.






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






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






36. The money left over when income exceeds expenditure.






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






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

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






40. The first time a company sells shares of its stock to the public.






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






42. 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.






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






44. Uncertainty about expected return.






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






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






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






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






49. A legal entity that is seperate from its owners.






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