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






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






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






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






5. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






7. The principle prescribing that revenue is recognized when earned.






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






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






10. Assets put into the business by the owner.






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






12. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






14. 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.






15. 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.






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






17. 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.






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






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






20. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






22. 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






23. 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.






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






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






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






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






28. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






29. 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






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






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






32. 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.






33. Business owned by a single person.






34. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






37. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






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






47. 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






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






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






50. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.