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






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






3. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






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






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






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






8. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






9. Excess of expenses over revenues for a period.






10. 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.






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






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






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






14. 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.






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






16. A tax deferred account that allows individuals to plan for their retirement.






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






18. 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.






19. Business owned by two or more people.






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






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






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






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






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






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






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






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






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






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






30. Assets put into the business by the owner.






31. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






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






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






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






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






39. All purpose journal for recording the debits and credits of transactions and events.






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






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






42. 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.






43. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






44. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






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






49. Individuals or organizations entitled to receive payments






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