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






2. 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






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






4. 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.






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






6. 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.






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






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






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






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






11. 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.






12. An expense that changes from period to perio - such as food or gasoline costs.






13. 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






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






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






16. Process of recording transactions in a journal.






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






18. Business owned by two or more people.






19. List of accounts used by a company' includes and identification number for each account.






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






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






22. 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






23. A corporation's basic ownership share.






24. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






26. 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.






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






28. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






29. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






31. Excess of expenses over revenues for a period.






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






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






34. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






36. 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.






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






38. Uncertainty about expected return.






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






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






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






42. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






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






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






47. Rules that specify acceptable accounting practices.






48. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






49. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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







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