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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. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






3. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






5. Items paid for in advance of receiving their benefits. Classified as assets.






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






7. Journal entries that affect at least three accounts.






8. 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.






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






10. 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.






11. The money left over when income exceeds expenditure.






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






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






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






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






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






17. Uncertainty about expected return.






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






19. 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.






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






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






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






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






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






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






26. 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.






27. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






30. Owners of a corporation who usually receive dividends. Also called stockholders.






31. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






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






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






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






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






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






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






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






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






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






42. 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.






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






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






45. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






49. Business owned by two or more people.






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







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