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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. Uncertainty about expected return.






2. 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






3. 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.






4. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






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






8. Excess of expenses over revenues for a period.






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






10. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






11. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






12. Assets pulled out of the business by the owner.






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






14. 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.






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






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






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






18. The money left over when income exceeds expenditure.






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






20. 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.






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






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






23. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






24. Individuals or organizations that owe money.






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






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






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






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






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






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






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






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






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






34. 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.






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






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






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






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






39. Assets put into the business by the owner.






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






41. 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.






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






43. Owners of a corporation who usually receive dividends. Also called shareholders.






44. Record containing all accounts (with amounts) for a business.






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






46. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






49. 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.






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