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






2. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






4. Individuals or organizations entitled to receive payments






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






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






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






8. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






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






12. 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.






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






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






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






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






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






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






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

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






21. 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






22. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






25. 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.






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






27. Rules that specify acceptable accounting practices.






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






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






30. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






31. 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.






32. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






35. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






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






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






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






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






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






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






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






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






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






47. 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.






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






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






50. 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.