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






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






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






4. Owners of a corporation who usually receive dividends. Also called shareholders.






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






6. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






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






10. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






13. 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






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






15. Gross increase in equity from a company's business activities that earn income.






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






17. 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.






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






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






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






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






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






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






24. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






27. 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.






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






29. Excess of expenses over revenues for a period.






30. 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.






31. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






33. Individuals or organizations entitled to receive payments






34. Length of time covered by financial statements; also called reporting period.






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






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






37. Rules that specify acceptable accounting practices.






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






39. Individuals or organizations that owe money.






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






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






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






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






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






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






46. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






48. 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.






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






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