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DSST Principles Of Finance
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Subjects
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dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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. The first time a company sells shares of its stock to the public.
Cash Basis Accounting
IPO
Portfolio Income
Chart of Accounts
2. 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.
Expense Recognition Principle
Source Documents
External Transactions
Managerial Accounting
3. Loaning or giving money to a business in orer to save it from bankruptcy.
Source Documents
Financial Accounting
Interim Financial Statements
Bailout
4. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
External Users
Present Value
Stockholders
5. Persons using accounting information who are directly involved in managing the organization.
Securities
Internal users
Managerial Accounting
Accounting
6. Tool used to show the effects of transactions and events on individual accounts.
Working Papers
External Users
Unearned Revenue
T Account
7. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Conceptual Framework
Unsecured Loan
Internal users
8. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Audit
Adjusted Trial Balance
Mergers
Post Closing Trial Balance
9. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Credit
Work Sheet
Surplus
10. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Post Closing Trial Balance
Liabilities
Income Summary
Mergers
11. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Sole Proprietorship
Recordkeeping
Depreciation
12. Expenses that remain the same regardless of the circumstances.
Pro Forma Financial Statement
Posting
Fixed Expense
SEC (Securites and Exchange Commision)
13. 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
Sarbanes-Oxley Act (SOX)
Journalizing
Revenues
Operating Cycle
14. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Bookkeeping
Securities and Exchange Commission
Limited Liability Corporation
Reversing Entries
15. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Ledger
Adjusting Entry
Limited Liability Corporation
Plant Assets
16. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Limited Liability Corporation
Securities
Current Liabilities
Unearned Revenue
17. 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.
Adjusted Trial Balance
Securities
Present Value
Matching Principle
18. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Profit Margin
Double Entry Accounting
Current Liabilities
Current Assets
19. Principle that assumes transactions and events can be expressed in money units.
Source Documents
Stock
Securities
Monetary Unit Assumption
20. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Prepaid Expenses
Time Period Assumptions
Natural Business Years
Long Term Liabilities
21. Income from investments - including dividends - interest - or the sale of a property.
Bonds
Portfolio Income
Events
Chart of Accounts
22. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
SEC (Securites and Exchange Commision)
Ethics
Sarbanes-Oxley Act (SOX)
23. 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.
SEC (Securites and Exchange Commision)
Unadjusted Trial Balance
Closing process
Common Stock
24. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Statement of Cash Flows
Unearned Revenue
Return on Assets
Cash Basis Accounting
25. Items paid for in advance of receiving their benefits. Classified as assets.
Account Balance
Balance Column Account
Financial Accounting
Prepaid Expenses
26. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Owner Investment
Stock
Reversing Entries
Cost Principle
27. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Ethical Dilemma
Cost Principle
Bookkeeping
Acquisition
28. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Prepaid Expenses
Federal Reserve System
Fiscal Year
29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Recordkeeping
Temporary Accounts
Intangible assets
International Financial Reporting Standards
30. A legal entity that is seperate from its owners.
Unearned Revenues
Fixed Expense
Expenses
Corporations
31. 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.
Straight-line Depreciation Method
Prepaid Expenses
International Financial Reporting Standards
Annual Financial Statements
32. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Securities and Exchange Commission
Natural Business Years
Balance Column Account
Preferred Stock
33. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Current Assets
Income Summary
Expenses
SMART Goal
34. 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
Creditors
NASDAQ
Risk
Cash Basis Accounting
35. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Ponzi Scheme
Debit
Working Papers
Corporation
36. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting
Accounting Cycle
Current Assets
CD (Certificate of Deposit)
37. An expense that changes from period to perio - such as food or gasoline costs.
Bonds
Varaiable Expense
Ethical Dilemma
Matching Principle
38. Exchanges of economic value between one entity and another entity.
Business Entity Assumption
External Transactions
Going-concern Assumptions
Financial Accounting Standards Board
39. Excess of expenses over revenues for a period.
Temporary Accounts
Chart of Accounts
Journal
Net Loss
40. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Bailout
Unearned Revenues
Accrual Basis Accounting
CD (Certificate of Deposit)
41. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Corporations
Accounting Equation
Return on Assets
Unadjusted Trial Balance
42. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Financial Accounting
Plant Assets
Owner Withdrawals
Accrued Expenses
43. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Time Period Assumptions
Full Disclosure Principle
Equity
Posting Reference Column
44. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Credit
Risk
Classified Balance Sheet
NYSE (New York Stock Exchange)
45. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Conceptual Framework
Expense Recognition Principle
Financial Accounting
Credit
46. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Statement of Owner's Equity
Reversing Entries
Compound Journal Entries
47. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
T Account
Money Market Account
Surplus
Ponzi Scheme
48. Owners of a corporation who usually receive dividends. Also called shareholders.
Statement of Cash Flows
Revenue Recognition Principle
Stockholders
Time Period Assumptions
49. Monies (or sums of money) received from an investment; often in percent form.
Creditors
Conceptual Framework
Return
Events
50. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
External Users
Cash Basis Accounting
Trial balance
Accounting Equation
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