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






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






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






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






5. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






6. A corporation's basic ownership share.






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






8. Uncertainty about expected return.






9. 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.






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






11. Persons using accounting information who are not directly involved in running the organization.






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






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






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






15. Business owned by a single person.






16. 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.






17. 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.






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






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






20. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






23. 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.






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






25. 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






26. The money left over when income exceeds expenditure.






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

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28. Persons using accounting information who are directly involved in managing the organization.






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






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






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






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






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






34. 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






35. Individuals or organizations entitled to receive payments






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






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






38. 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.






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






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






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






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






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






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






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






46. 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.






47. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






50. 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