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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. 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.






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






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






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






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






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






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






8. Process of recording transactions in a journal.






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






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






11. A tax deferred account that allows individuals to plan for their retirement.






12. Principle that assumes transactions and events can be expressed in money units.






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






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






15. 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).






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






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






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






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






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






21. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






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






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






26. 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).






27. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






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






32. 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.






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






34. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






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






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






39. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






40. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






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






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






44. 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.






45. The first time a company sells shares of its stock to the public.






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






47. 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.






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






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






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