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






2. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






3. 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






4. Assets put into the business by the owner.






5. 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.






6. 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.






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






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






9. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






10. The money left over when income exceeds expenditure.






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






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






13. 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.






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






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






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






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






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






19. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






22. Business owned by a single person.






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






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






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






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






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






28. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






29. 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.






30. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






31. 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.






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






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






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






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






37. Process of recording transactions in a journal.






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






39. 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.






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






41. A legal entity that is seperate from its owners.






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






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






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






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






46. 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






47. 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.






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






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






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