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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. 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.






2. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






3. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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






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






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






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






9. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






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






14. 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.






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






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






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






18. 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.






19. Assets put into the business by the owner.






20. 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.






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






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






23. 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.






24. Process of recording transactions in a journal.






25. 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.






26. 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).






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






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






29. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






30. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






31. 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






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






33. Individuals or organizations entitled to receive payments






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






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






36. 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.






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






38. 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.






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






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






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






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






43. Expenses that remain the same regardless of the circumstances.






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






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






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






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






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






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






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