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






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






3. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






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






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






9. Individuals or organizations entitled to receive payments






10. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






13. Rules that specify acceptable accounting practices.






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






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






16. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






17. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






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






20. The combining of two or more comapnies into one larger company.






21. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






22. 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






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






24. Individuals hired to review financial reports and information systems of organizations.






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






26. Individuals or organizations that owe money.






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






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






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






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






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






32. 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.






33. 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






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






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

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






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






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






39. Assets put into the business by the owner.






40. 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.






41. 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.






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






43. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






44. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






46. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






49. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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







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