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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. 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.






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






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






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






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






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






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






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






9. The principle prescribing that revenue is recognized when earned.






10. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






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






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






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






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






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






18. 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.






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






20. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






22. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






23. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






26. 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






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






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






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






30. 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.






31. Loaning or giving money to a business in orer to save it from bankruptcy.






32. Process of recording transactions in a journal.






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






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






35. Uncertainty about expected return.






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






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






38. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






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






43. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






45. Difference between total debits and total credits (including the beginning balance) for an account.






46. 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.






47. 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.






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






49. Excess of expenses over revenues for a period.






50. A loan that is not backed by collateral - but by the promise of the borrower to repay it.