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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. 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.






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






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






4. Business owned by a single person.






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

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6. 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.






7. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






8. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






9. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






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






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






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






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






15. 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.






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






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






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






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






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






21. 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






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






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






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






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






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






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






28. 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).






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






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






31. 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






32. Individuals or organizations entitled to receive payments






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






34. Business owned by one person that is not organized as a corporation.






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






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






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






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






39. Business owned by two or more people.






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






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






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






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






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






45. 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.






46. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






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






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







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