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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. Uncertainty about expected return.






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






3. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






4. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






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






8. 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






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






10. 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).






11. Loaning or giving money to a business in orer to save it from bankruptcy.






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






13. Individuals hired to review financial reports and information systems of organizations.






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






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






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






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






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






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






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






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






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






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


24. 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.






25. 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.






26. The money left over when income exceeds expenditure.






27. Process of recording transactions in a journal.






28. Individuals or organizations that owe money.






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






30. 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.






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






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






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






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






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






36. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






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






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






40. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






41. 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.






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






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






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






45. Individuals or organizations entitled to receive payments






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






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






48. 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






49. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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