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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. Area of accounting aimed mainly at serving external users.






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






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






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






5. All purpose journal for recording the debits and credits of transactions and events.






6. 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.






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






8. 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






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






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






11. 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






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






13. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






15. 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






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






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






18. 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.






19. The money left over when income exceeds expenditure.






20. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






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






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






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






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






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






28. Business owned by two or more people.






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






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






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






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






33. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






34. 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.






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






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






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






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






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






40. A legal entity that is seperate from its owners.






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






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






43. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






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






46. Rules that specify acceptable accounting practices.






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






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






49. 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).






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