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






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






3. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






4. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






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






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






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






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






10. 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






11. Uncertainty about expected return.






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






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






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






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






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






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






18. Balance sheet that broadly groups assets - liabilities - and equity accounts.






19. 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.






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






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






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






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






24. 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).






25. Tool used to show the effects of transactions and events on individual accounts.






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






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






28. Journal entries that affect at least three accounts.






29. 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






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






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






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






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






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. The combining of two or more comapnies into one larger company.






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






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






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






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






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






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






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






43. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






45. 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.






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






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






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






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






50. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.