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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. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






4. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






6. Business owned by a single person.






7. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






8. Rules that specify acceptable accounting practices.






9. 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.






10. Process of recording transactions in a journal.






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

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12. 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






13. 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.






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






15. The money left over when income exceeds expenditure.






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






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






18. Excess of expenses over revenues for a period.






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






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






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






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






23. 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.






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






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






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






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






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






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






30. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






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






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






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






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






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






39. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






41. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






43. 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.






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






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






46. 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.






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






48. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






Can you answer 50 questions in 15 minutes?



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