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






2. 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






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






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






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






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






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






8. Process of recording transactions in a journal.






9. 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).






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






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






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






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






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






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






16. 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.






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






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






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






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






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






22. Statements that show the effect of proposed transactions and events as if they had occurred.






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






24. Rules that specify acceptable accounting practices.






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






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






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






28. Business owned by two or more people.






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






30. 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.






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






32. 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






33. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






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






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






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






38. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






40. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






42. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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


44. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






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






47. 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.






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






49. A corporation's basic ownership share.






50. 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.