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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. Business owned by two or more people.






2. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






4. 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.






5. 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.






6. 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.






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






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






10. 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






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






12. Individuals or organizations entitled to receive payments






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






14. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






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






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






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






20. Happenings that both affect an organization's financial position and can be reliably measured.






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






22. 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.






23. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






25. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






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






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






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






31. 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.






32. Rules that specify acceptable accounting practices.






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






34. 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.






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






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






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






38. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






40. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






42. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






43. 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.






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






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






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






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






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






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






50. Process of recording transactions in a journal.