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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. 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






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






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






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






5. 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.






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






7. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






10. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






12. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






14. Assets put into the business by the owner.






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






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






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






19. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






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






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






24. 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.






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






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






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






28. 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.






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






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






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






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






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






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






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






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






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






38. 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






39. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






40. The money left over when income exceeds expenditure.






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






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






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






44. 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.






45. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






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






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






50. 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