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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. 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.






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






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






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






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






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






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






8. Excess of expenses over revenues for a period.






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






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






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






12. 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






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






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






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






16. The money left over when income exceeds expenditure.






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






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






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






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






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






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






23. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






24. 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.






25. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






28. Uncertainty about expected return.






29. Rules that specify acceptable accounting practices.






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






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






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






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






34. Income from investments - including dividends - interest - or the sale of a property.






35. 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.






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






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






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






39. Assets put into the business by the owner.






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






41. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






43. Process of recording transactions in a journal.






44. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






46. Individuals or organizations entitled to receive payments






47. 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).






48. Business owned by two or more people.






49. 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.






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