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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. 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.






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






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






4. The money left over when income exceeds expenditure.






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






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






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






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






9. 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.






10. Statements that show the effect of proposed transactions and events as if they had occurred.






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






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






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






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






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






16. 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






17. Business owned by one person that is not organized as a corporation.






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






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






20. Uncertainty about expected return.






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






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


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






24. 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.






25. 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.






26. Business owned by two or more people.






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






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






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






30. Gross increase in equity from a company's business activities that earn income.






31. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






34. 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






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






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






37. 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.






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






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






40. Excess of expenses over revenues for a period.






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






42. A corporation's basic ownership share.






43. The principle prescribing that revenue is recognized when earned.






44. 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.






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






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






47. 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






48. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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