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






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






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






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






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






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






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






8. Assets put into the business by the owner.






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






10. 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.






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






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






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






14. 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.






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






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






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






18. 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.






19. 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.






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






21. 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.






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






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






24. All purpose journal for recording the debits and credits of transactions and events.






25. 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






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






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






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






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






30. 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






31. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






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






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






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






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






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






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






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






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






42. 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.






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






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






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

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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. 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.






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






49. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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