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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. Expenses that remain the same regardless of the circumstances.






2. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






5. 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.






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






7. 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.






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






9. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






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






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






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






15. Loaning or giving money to a business in orer to save it from bankruptcy.






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






17. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






19. 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.






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






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






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






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






24. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






26. Assets put into the business by the owner.






27. Journal entries that affect at least three accounts.






28. 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.






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






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






31. 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






32. Individuals or organizations entitled to receive payments






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






34. Principle that assumes transactions and events can be expressed in money units.






35. A tax deferred account that allows individuals to plan for their retirement.






36. Individuals hired to review financial reports and information systems of organizations.






37. 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






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






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






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






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






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






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






44. 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






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






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






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






48. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






49. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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