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






2. Independent group of full-time members responsible for setting accounting rules.






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






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






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






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






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






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






9. 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.






10. Process of recording transactions in a journal.






11. 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.






12. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






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






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






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






23. Persons using accounting information who are not directly involved in running the organization.






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






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

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






27. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






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






32. 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.






33. Uncertainty about expected return.






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






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






36. Individuals or organizations entitled to receive payments






37. Assets put into the business by the owner.






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






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






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






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






42. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






44. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






45. Business owned by two or more people.






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






47. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






49. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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