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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 principle prescribing that revenue is recognized when earned.






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






3. 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






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






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






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






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






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






9. 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.






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






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






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. The twelve month period that ends when a company's sales activities are at their lowest point.






14. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






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






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






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






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






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






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






24. Rules that specify acceptable accounting practices.






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






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






28. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






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






32. 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






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






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






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






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






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






38. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






39. Uncertainty about expected return.






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






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






42. Excess of expenses over revenues for a period.






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






44. Persons using accounting information who are directly involved in managing the organization.






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






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

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47. 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.






48. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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