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






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






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






4. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






7. 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.






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






9. A corporation's basic ownership share.






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






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






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






13. 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






14. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






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






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






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






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






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






21. Journal entries that affect at least three accounts.






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






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






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






25. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






28. 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.






29. 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






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






31. Individuals or organizations that owe money.






32. Business owned by two or more people.






33. 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.






34. Assets pulled out of the business by the owner.






35. 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.






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






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






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






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






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






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






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






43. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






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






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






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






50. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.