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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. Business owned by a single person.






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






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






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






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






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






7. 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.






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






9. Rules that specify acceptable accounting practices.






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






11. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






13. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






15. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






17. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






18. Assets put into the business by the owner.






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






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






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






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






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






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






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






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






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






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






30. 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






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






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






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






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






35. Uncertainty about expected return.






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






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






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






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

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40. Business owned by two or more people.






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






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






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






44. 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






45. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






46. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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






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