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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. 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).






2. 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.






3. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






4. Process of recording transactions in a journal.






5. 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






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






7. The combining of two or more comapnies into one larger company.






8. 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.






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






10. Individuals or organizations entitled to receive payments






11. A tax deferred account that allows individuals to plan for their retirement.






12. 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.






13. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






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






16. 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.






17. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






18. 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.






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






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






21. 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






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






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






24. 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.






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






26. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






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






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






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






31. 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






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






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






34. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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






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






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






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






41. 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.






42. Area of accounting aimed mainly at serving external users.






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






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






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






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






47. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






49. 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).






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