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






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






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






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






6. 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.






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






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






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






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






11. 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.






12. 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.






13. 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.






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






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






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






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






18. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






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






22. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






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






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






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






28. Individuals or organizations entitled to receive payments






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






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






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






32. All purpose journal for recording the debits and credits of transactions and events.






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






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






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






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

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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. Excess of expenses over revenues for a period.






39. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






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






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






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






46. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






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






49. 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






50. A corporation's basic ownership share.