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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. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






2. Excess of expenses over revenues for a period.






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






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






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






6. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






8. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






10. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






11. 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).






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






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






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






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






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






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






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






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






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






21. 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






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






23. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






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






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






28. The principle prescribing that revenue is recognized when earned.






29. Business owned by a single person.






30. 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.






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






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






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






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






35. 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






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






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






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






40. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






42. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






43. Rules that specify acceptable accounting practices.






44. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






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






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






48. Individuals or organizations entitled to receive payments






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






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