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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. Business owned by two or more people.






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






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






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






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






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






7. A corporation's basic ownership share.






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






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






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






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






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






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






14. The money left over when income exceeds expenditure.






15. 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.






16. Uncertainty about expected return.






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






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






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






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






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






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






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






25. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






28. 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.






29. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






31. 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.






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






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






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






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






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






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






38. 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.






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






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






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






42. 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






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






44. Process of recording transactions in a journal.






45. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






49. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






50. 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