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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. 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.






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

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






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






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






6. 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.






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






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






9. Uncertainty about expected return.






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






11. 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.






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






13. 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.






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






15. The twelve month period that ends when a company's sales activities are at their lowest point.






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






17. 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






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






19. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






20. 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.






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






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






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






24. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






27. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






28. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






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






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






33. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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






37. Excess of expenses over revenues for a period.






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






39. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






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






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






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






46. Business owned by two or more people.






47. 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.






48. Persons using accounting information who are directly involved in managing the organization.






49. 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.






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