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






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






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






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






5. 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.






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






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






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






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






10. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






12. Individuals or organizations entitled to receive payments






13. 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.






14. Process of recording transactions in a journal.






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






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






17. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






18. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






20. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






35. Difference between total debits and total credits (including the beginning balance) for an account.






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






37. 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.






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. 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






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






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






42. 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






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






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






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






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






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

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48. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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