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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 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






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






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






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






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






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






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






8. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






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






11. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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

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14. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






16. 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.






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






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






19. Area of accounting aimed mainly at serving the decision-making needs of internal users.






20. 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.






21. 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.






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






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






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






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






26. A legal entity that is seperate from its owners.






27. 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.






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






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






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






31. Individuals hired to review financial reports and information systems of organizations.






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






33. 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).






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






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






36. 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.






37. Individuals or organizations that owe money.






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






39. Process of recording transactions in a journal.






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






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






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






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






44. 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.






45. 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.






46. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






48. 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






49. 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.






50. Excess of expenses over revenues for a period.