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






2. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






3. Journal entries that affect at least three accounts.






4. Process of recording transactions in a journal.






5. Rules that specify acceptable accounting practices.






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






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






8. A corporation's basic ownership share.






9. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






10. 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.






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






12. 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.






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






14. 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






15. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






16. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






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






19. Individuals or organizations that owe money.






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






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






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






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






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






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






26. 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.






27. 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.






28. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






31. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






34. Goals that are specific - measurable - attainable - realistic - and time bound.






35. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






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






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






39. 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.






40. 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.






41. 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






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






43. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






44. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






46. Business owned by one person that is not organized as a corporation.






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






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






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






50. Individuals or organizations entitled to receive payments