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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. 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.






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






3. 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.






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






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






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






7. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






8. 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.






9. 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.






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






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






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






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






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






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






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






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






18. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






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






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






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






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






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






25. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






26. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






27. 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.






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






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






30. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






31. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






33. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






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






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






38. Process of transferring journal entry information to the ledger; computerized systems automate this process.






39. Business owned by two or more people.






40. The money left over when income exceeds expenditure.






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






42. Individuals or organizations entitled to receive payments






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






44. Excess of expenses over revenues for a period.






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






46. An expense that changes from period to perio - such as food or gasoline costs.






47. Rules that specify acceptable accounting practices.






48. Uncertainty about expected return.






49. 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






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