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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 backed by collateral such as cars - houses - or other assets.






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






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






4. 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.






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






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






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






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






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






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






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






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






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






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






15. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






16. Process of recording transactions in a journal.






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






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






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






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






21. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






24. Business owned by two or more people.






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






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






27. Statements that show the effect of proposed transactions and events as if they had occurred.






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






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






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






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






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






33. 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.






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






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






36. 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).






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






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






39. 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.






40. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






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






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






44. 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.






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






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






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






48. Journal entries that affect at least three accounts.






49. Difference between total debits and total credits (including the beginning balance) for an account.






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