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






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






3. 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.






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






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






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






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






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






9. Income that is available after all of the essential financial commitments have been paid.






10. 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).






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






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






13. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






14. 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).






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






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






17. 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.






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






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






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






21. Assets put into the business by the owner.






22. 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.






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






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






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






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






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






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






29. 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.






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






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






32. 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






33. The money left over when income exceeds expenditure.






34. 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.






35. Uncertainty about expected return.






36. 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.






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






38. Excess of expenses over revenues for a period.






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






40. 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






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






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






43. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






44. A corporation's basic ownership share.






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






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






47. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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