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






2. A loan that is backed by collateral such as cars - houses - or other assets.






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






4. 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.






5. 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






6. 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.






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






8. Business owned by two or more people.






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






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






11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






12. 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.






13. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






15. List of accounts used by a company' includes and identification number for each account.






16. Process of recording transactions in a journal.






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 Matching Principle.






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






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






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






21. Individuals or organizations that owe money.






22. Journal entries that affect at least three accounts.






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






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






25. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






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






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

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






30. Area of accounting aimed mainly at serving the decision-making needs of internal users.






31. The twelve month period that ends when a company's sales activities are at their lowest point.






32. 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.






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






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






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






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






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






38. A corporation's basic ownership share.






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






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






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






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






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






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






45. 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.






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






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






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






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






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