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






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






3. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






4. Individuals or organizations entitled to receive payments






5. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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






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






10. Process of recording transactions in a journal.






11. 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.






12. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






15. 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.






16. A corporation's basic ownership share.






17. 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






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






19. 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.






20. Area of accounting aimed mainly at serving external users.






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






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






23. Exchanges of economic value between one entity and another entity.






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






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






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






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






28. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






30. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






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






35. Tool used to show the effects of transactions and events on individual accounts.






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






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






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






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






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






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






42. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






43. Rules that specify acceptable accounting practices.






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






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






46. Journal entries that affect at least three accounts.






47. 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.






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






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






50. 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