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






2. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






3. 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






4. 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.






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






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






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






8. 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).






9. 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






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






11. 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.






12. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






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






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






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






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






18. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






20. 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.






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






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






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






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






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






26. 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.






27. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






28. 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






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






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






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






32. Process of recording transactions in a journal.






33. Gross increase in equity from a company's business activities that earn income.






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






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






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






37. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






40. 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.






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






42. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






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






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






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






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






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






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






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