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






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






3. 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.






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






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






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






7. Assets pulled out of the business by the owner.






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






9. Excess of expenses over revenues for a period.






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






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






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






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






14. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






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






18. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






19. The money left over when income exceeds expenditure.






20. Uncertainty about expected return.






21. Rules that specify acceptable accounting practices.






22. Business owned by a single person.






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






24. 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.






25. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






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






29. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






30. The principle prescribing that revenue is recognized when earned.






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






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






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






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

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






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






37. Income that is available after all of the essential financial commitments have been paid.






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






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






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. 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






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






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






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






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






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






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






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






49. 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.






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