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






2. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






4. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






6. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






8. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






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






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






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






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






15. Process of transferring journal entry information to the ledger; computerized systems automate this process.






16. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






18. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






20. 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).






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






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






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






24. 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.






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






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






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






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






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






30. 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.






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






32. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






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






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






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






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






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






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






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






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






43. 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.






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






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






46. The value of a future cash steam discounted at the appropriate market interest rate.






47. Activities within an organization that can affect the accounting equation.






48. Journal entries that affect at least three accounts.






49. 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.






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







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