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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. 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.






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






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






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






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






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






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






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






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






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






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






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






13. Persons using accounting information who are not directly involved in running the organization.






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






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






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






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






18. 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).






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






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






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






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






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






24. 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.






25. 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






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






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






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






29. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






31. 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






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. 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.






34. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






36. Report of changes in equity over a period; adjusted for increases and for decreases.

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37. The principle prescribing that revenue is recognized when earned.






38. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






40. The money left over when income exceeds expenditure.






41. 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






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






43. 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.






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






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






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






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






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






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






50. Individuals or organizations that owe money.