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






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






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






4. 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.






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






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






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






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






9. The money left over when income exceeds expenditure.






10. 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.






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






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






13. Assets put into the business by the owner.






14. Process of recording transactions in a journal.






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






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






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






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






19. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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






22. Individuals or organizations entitled to receive payments






23. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






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






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






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






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






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






30. Excess of expenses over revenues for a period.






31. Report of changes in equity over a period; adjusted for increases and for decreases.

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32. Individuals or organizations that owe money.






33. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






36. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






39. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






40. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






48. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






49. 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.






50. 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).