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






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






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






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






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






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






7. Excess of expenses over revenues for a period.






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






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






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






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






12. Journal entries that affect at least three accounts.






13. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






14. Assets put into the business by the owner.






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






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






17. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






18. Process of recording transactions in a journal.






19. 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.






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






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






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






23. The money left over when income exceeds expenditure.






24. Uncertainty about expected return.






25. A corporation's basic ownership share.






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






27. Individuals or organizations that owe money.






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






29. 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).






30. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






31. 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.






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






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






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






35. 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.






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






37. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






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






40. 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






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






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






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






44. 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.






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






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






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






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






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






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