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






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






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






4. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






5. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






7. 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






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






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






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






11. A corporation's basic ownership share.






12. 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.






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






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






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






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






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






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






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






20. Uncertainty about expected return.






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






22. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






25. Rules that specify acceptable accounting practices.






26. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






28. 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






29. 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.






30. Business owned by two or more people.






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






32. 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.






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






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






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






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






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






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






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






40. 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.






41. Assets put into the business by the owner.






42. 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.






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






44. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






45. Individuals or organizations that owe money.






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






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






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






49. Business owned by a single person.






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







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