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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 money left over when income exceeds expenditure.






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






3. Uncertainty about expected return.






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






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






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






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






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






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






10. 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.






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






12. 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.






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






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






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






16. 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.






17. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






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






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






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






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






24. Assets put into the business by the owner.






25. 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






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






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






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






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






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






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






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






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






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






35. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






36. A corporation's basic ownership share.






37. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






39. 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.






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






41. Excess of expenses over revenues for a period.






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






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






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






45. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






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






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