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






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






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






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






5. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






7. 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.






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






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






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






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






12. 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






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






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






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






16. A corporation's basic ownership share.






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






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






19. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






20. Individuals or organizations that owe money.






21. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






23. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






25. 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.






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






27. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






29. 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).






30. 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.






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






32. 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.






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






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






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






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






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






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






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






40. Independent group of full-time members responsible for setting accounting rules.






41. 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.






42. 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






43. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






44. Assets put into the business by the owner.






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






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






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






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






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






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







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