Test your basic knowledge |

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






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






3. 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.






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






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






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






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






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






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






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






11. Individuals or organizations entitled to receive payments






12. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






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






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






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






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






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






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






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






22. Uncertainty about expected return.






23. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






24. 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






25. Persons using accounting information who are not directly involved in running the organization.






26. Excess of expenses over revenues for a period.






27. 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.






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






29. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






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






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






36. Principle that assumes transactions and events can be expressed in money units.






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






38. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






41. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






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






45. A corporation's basic ownership share.






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






47. 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.






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






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






50. Journal entries that affect at least three accounts.