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






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






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






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






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






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






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






8. 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.






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






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






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






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






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






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






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






16. 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






17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






18. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






21. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






22. Journal entries that affect at least three accounts.






23. Individuals or organizations that owe money.






24. 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).






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






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






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






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






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






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






31. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






35. 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






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






37. Rules that specify acceptable accounting practices.






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






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






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






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






42. 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.






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






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






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






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






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






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






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






50. 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.