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






2. 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.






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






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






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






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






7. 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).






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






9. Expenses that remain the same regardless of the circumstances.






10. 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






11. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






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






13. Income that is available after all of the essential financial commitments have been paid.






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






15. 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.






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






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






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






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






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






21. Exchanges of economic value between one entity and another entity.






22. Process of recording transactions in a journal.






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






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






25. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






27. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






29. The money left over when income exceeds expenditure.






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






31. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






34. Activities within an organization that can affect the accounting equation.






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






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






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






38. 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






39. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






40. Individuals or organizations that owe money.






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






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






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






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






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






46. Journal entries that affect at least three accounts.






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






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






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






50. Uncertainty about expected return.