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






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






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






4. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






6. 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.






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






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






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






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






11. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






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






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






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






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






17. 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).






18. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






20. Individuals hired to review financial reports and information systems of organizations.






21. 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.






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






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






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






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






26. 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






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






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






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






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






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






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






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






34. Business owned by two or more people.






35. 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.






36. 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.






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






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






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






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






41. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






44. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






45. 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






46. Gross increase in equity from a company's business activities that earn income.






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






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






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






50. 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.