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






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






3. 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






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






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






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






7. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






9. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






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






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






14. Goals that are specific - measurable - attainable - realistic - and time bound.






15. Uncertainty about expected return.






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






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






18. The money left over when income exceeds expenditure.






19. Assets put into the business by the owner.






20. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






21. 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.






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






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






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






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






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






27. A loan that is backed by collateral such as cars - houses - or other assets.






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






29. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






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






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






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






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






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






37. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






39. Outflows or using up of assets as part of operations of business to generate sales.






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






41. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






45. A corporation's basic ownership share.






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






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






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






49. Individuals or organizations that owe money.






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