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






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






3. Process of recording transactions in a journal.






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






5. Journal entries that affect at least three accounts.






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






7. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






10. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






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






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






14. 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.






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






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






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






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






19. 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






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. 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






22. The money left over when income exceeds expenditure.






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


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






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






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






28. 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).






29. 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.






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






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. Business owned by a single person.






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






34. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






35. 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.






36. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






38. 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.






39. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






40. Rules that specify acceptable accounting practices.






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






42. 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.






43. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






44. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






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






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






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






49. Business owned by two or more people.






50. 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