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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. The money left over when income exceeds expenditure.






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






3. 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.






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






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






6. 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






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






8. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






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






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






13. 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.






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






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






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






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






18. 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.






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






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






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






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






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






24. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






27. 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






28. A corporation's basic ownership share.






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






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






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






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






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






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






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






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






37. 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.






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






39. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






41. 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.






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






43. Income that is available after all of the essential financial commitments have been paid.






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






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






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






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






48. 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).






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






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