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DSST Principles Of Finance

Subjects : dsst, business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






2. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






4. 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






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






6. 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.






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






8. The money left over when income exceeds expenditure.






9. 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.






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






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






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






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






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






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






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






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






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






19. 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.






20. Uncertainty about expected return.






21. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






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






26. Individuals or organizations that owe money.






27. 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.






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






29. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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

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






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






33. 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.






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






35. Individuals or organizations entitled to receive payments






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






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






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






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






40. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






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






44. 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.






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






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






47. 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






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






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






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







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