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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. Excess of expenses over revenues for a period.






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






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






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






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






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






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






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






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






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






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






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






14. 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.






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






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






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






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






19. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






21. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






25. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






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






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






30. Individuals or organizations that owe money.






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






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






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






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






35. 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






36. Process of recording transactions in a journal.






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






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






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






40. 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.






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






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






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






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






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






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






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






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






49. 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.






50. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.