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






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






4. 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).






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






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






7. The first time a company sells shares of its stock to the public.






8. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






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






12. 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.






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






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






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






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






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






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






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






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






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






22. Length of time covered by financial statements; also called reporting period.






23. Business owned by two or more people.






24. Business owned by a single person.






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






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






27. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






28. 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.






29. 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.






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






31. 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.






32. List of accounts and balances prepared before accounting adjustments are recorded and posted.






33. Monies (or sums of money) received from an investment; often in percent form.






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






35. 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






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






37. Individuals or organizations entitled to receive payments






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






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






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






41. Excess of expenses over revenues for a period.






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






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






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






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






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






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






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






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






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