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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 Expense Recognition Principle.






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






3. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






6. Business owned by two or more people.






7. 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






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






9. 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






10. Business owned by a single person.






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






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






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






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






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






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






17. 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).






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






19. Journal entries that affect at least three accounts.






20. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






23. 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.






24. Assets pulled out of the business by the owner.






25. A corporation's basic ownership share.






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






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






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






29. 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






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






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






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






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






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






35. Expenses that remain the same regardless of the circumstances.






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






37. Excess of expenses over revenues for a period.






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






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






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






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






42. Individuals or organizations entitled to receive payments






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






44. Persons using accounting information who are directly involved in managing the organization.






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






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






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






48. Individuals or organizations that owe money.






49. Tool used to show the effects of transactions and events on individual accounts.






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