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






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






3. A corporation's basic ownership share.






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






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






6. The money left over when income exceeds expenditure.






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






8. 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.






9. Goals that are specific - measurable - attainable - realistic - and time bound.






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






11. 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






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






13. 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.






14. Assets put into the business by the owner.






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






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






17. 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.






18. 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






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






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






21. Journal entries that affect at least three accounts.






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






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






24. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






26. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






28. Individuals or organizations entitled to receive payments






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






30. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






31. The combining of two or more comapnies into one larger company.






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






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






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






35. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






36. 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.






37. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






38. 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.






39. 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.






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






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






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






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






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






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






46. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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

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48. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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