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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. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






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. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






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






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






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






9. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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

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11. Individuals or organizations that owe money.






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






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






14. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






17. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






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






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






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






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






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






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






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






26. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






28. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






29. 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.






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






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






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






33. The money left over when income exceeds expenditure.






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






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






36. 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






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






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






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






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






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






42. 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.






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






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






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






46. 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.






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






48. Excess of expenses over revenues for a period.






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






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