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






3. 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.






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






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






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






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






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






9. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






11. 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






12. Activities within an organization that can affect the accounting equation.






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






14. Principle that assumes transactions and events can be expressed in money units.






15. 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.






16. 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.






17. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






26. 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.






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






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






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






30. 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.






31. 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






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






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






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






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






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






37. 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.






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






39. Business owned by a single person.






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






41. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






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






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






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






47. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






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






Can you answer 50 questions in 15 minutes?



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