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






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. Individuals or organizations that owe money.






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






5. 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.






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






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






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






9. 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






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






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






12. Uncertainty about expected return.






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






14. Assets put into the business by the owner.






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






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






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






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






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






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






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






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






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






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

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






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






27. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






28. Area of accounting aimed mainly at serving external users.






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






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






31. 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






32. Rules that specify acceptable accounting practices.






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






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






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






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






37. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






39. The money left over when income exceeds expenditure.






40. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






41. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






42. 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.






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






44. Journal entries that affect at least three accounts.






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






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






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






48. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






49. Business owned by a single person.






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