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






2. 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.






3. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






6. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






7. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






8. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






10. 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).






11. Process of recording transactions in a journal.






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






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. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






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






17. Uncertainty about expected return.






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






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






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

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






22. 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






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






24. Assets put into the business by the owner.






25. 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.






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






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






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






29. A corporation's basic ownership share.






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






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






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






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






34. 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.






35. The combining of two or more comapnies into one larger company.






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






37. The money left over when income exceeds expenditure.






38. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






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






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






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






46. 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.






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






48. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






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