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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 system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






8. Rules that specify acceptable accounting practices.






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






10. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






11. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






14. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






15. Independent group of full-time members responsible for setting accounting rules.






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






17. Persons using accounting information who are directly involved in managing the organization.






18. Area of accounting aimed mainly at serving external users.






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






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






21. 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.






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






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






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






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






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






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






28. Business owned by two or more people.






29. 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).






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






31. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






33. 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.






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






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






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






37. 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






38. 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






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






40. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






41. Uncertainty about expected return.






42. Journal entries that affect at least three accounts.






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






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






45. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






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






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






49. Business owned by a single person.






50. Assets put into the business by the owner.