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






2. 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.






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






4. 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.






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






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






7. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






8. A corporation's basic ownership share.






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






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






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






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






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






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






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






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






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






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






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






20. 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






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






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






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






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






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






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






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






28. An expense that changes from period to perio - such as food or gasoline costs.






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






30. 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.






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






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






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






34. 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.






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






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






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






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






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






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






41. Monies (or sums of money) received from an investment; often in percent form.






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






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






44. Outflows or using up of assets as part of operations of business to generate sales.






45. 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






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






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






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

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49. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






50. 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.