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






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






3. A legal entity that is seperate from its owners.






4. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






7. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






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






10. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






12. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






13. 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.






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






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






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






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






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






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






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






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






22. 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.






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






24. 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.






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






26. 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).






27. All purpose journal for recording the debits and credits of transactions and events.






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






29. 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.






30. 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.






31. Persons using accounting information who are directly involved in managing the organization.






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






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






34. 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.






35. Area of accounting aimed mainly at serving external users.






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






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. 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.






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






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






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






42. Business owned by two or more people.






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






44. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






46. 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.






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






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






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






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