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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. 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).






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






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






4. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






5. Individuals or organizations entitled to receive payments






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






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






8. Individuals or organizations that owe money.






9. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






12. 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.






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






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






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






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






17. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






18. 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






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






20. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






21. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






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






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






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






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






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






28. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






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






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






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






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






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






36. An expense that changes from period to perio - such as food or gasoline costs.






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






38. Excess of expenses over revenues for a period.






39. The money left over when income exceeds expenditure.






40. Gross increase in equity from a company's business activities that earn income.






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






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. 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.






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






45. Assets put into the business by the owner.






46. 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.






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






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






49. 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.






50. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.