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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. 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.






2. 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).






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






4. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






7. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






8. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






9. Assets put into the business by the owner.






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






11. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






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






15. 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






16. 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.






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






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






19. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






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






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






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






26. Excess of expenses over revenues for a period.






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






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






29. 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.






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






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






32. 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.






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






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






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






36. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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






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






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






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






43. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






46. 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






47. 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.






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






49. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






50. 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.