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






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






3. 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.






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






5. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






8. 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.






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






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






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






12. Individuals or organizations entitled to receive payments






13. 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.






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






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






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






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






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






19. 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).






20. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






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






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






26. A corporation's basic ownership share.






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






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






29. Rules that specify acceptable accounting practices.






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






31. Assets put into the business by the owner.






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






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






34. 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).






35. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






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






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






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






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






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






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






44. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






46. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






48. Journal entries that affect at least three accounts.






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






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