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






2. 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.






3. 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.






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






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






6. 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.






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






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






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






10. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






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






13. 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.






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






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






16. 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






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






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






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






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






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

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






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






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






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






26. Individuals or organizations that owe money.






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






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






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






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






31. Outflows or using up of assets as part of operations of business to generate sales.






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






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






34. 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.






35. Assets pulled out of the business by the owner.






36. 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.






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






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






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






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






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






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






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






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






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






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






47. 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






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






49. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






50. The money left over when income exceeds expenditure.