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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. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






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






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






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

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






7. The money left over when income exceeds expenditure.






8. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






9. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






11. Statements that show the effect of proposed transactions and events as if they had occurred.






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






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






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






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






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






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






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






19. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






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






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






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






24. 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.






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






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






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






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






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






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






31. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






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






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






35. 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.






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






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






38. Outflows or using up of assets as part of operations of business to generate sales.






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






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






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






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






43. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






45. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






47. Monies (or sums of money) received from an investment; often in percent form.






48. 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.






49. Loaning or giving money to a business in orer to save it from bankruptcy.






50. 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