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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 legal entity that is seperate from its owners.






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






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






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






5. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






6. 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.






7. 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.






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






9. Length of time covered by financial statements; also called reporting period.






10. 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.






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






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






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






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






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






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






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






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






19. Journal entries that affect at least three accounts.






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






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






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






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






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






25. Individuals or organizations entitled to receive payments






26. List of accounts used by a company' includes and identification number for each account.






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






28. The money left over when income exceeds expenditure.






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






30. 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






31. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






32. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






33. Process of recording transactions in a journal.






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






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






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






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






38. 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.






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






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






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






42. 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.






43. 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.






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






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






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






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






48. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






50. 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







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