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






2. 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






3. Assets put into the business by the owner.






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






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






6. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






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






10. The money left over when income exceeds expenditure.






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






12. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






13. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






16. Individuals or organizations that owe money.






17. 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.






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






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






20. Excess of expenses over revenues for a period.






21. Journal entries that affect at least three accounts.






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






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






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






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






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






27. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






30. 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






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






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






33. 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.






34. Individuals or organizations entitled to receive payments






35. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






36. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






39. Income that is available after all of the essential financial commitments have been paid.






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






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






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






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






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






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






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






47. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






50. Business owned by a single person.