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






2. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






4. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






7. 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.






8. Business owned by one person that is not organized as a corporation.






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






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






11. Uncertainty about expected return.






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






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






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






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






16. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






18. Individuals or organizations entitled to receive payments






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






20. Journal entries that affect at least three accounts.






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






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






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






24. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






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






28. Assets put into the business by the owner.






29. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






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






33. 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






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






35. 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.






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






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

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38. The money left over when income exceeds expenditure.






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






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






41. Business owned by a single person.






42. Individuals or organizations that owe money.






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






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






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






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






48. Process of recording transactions in a journal.






49. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






50. 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.