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






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






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






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






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






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






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






8. Assets put into the business by the owner.






9. 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.






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






11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






13. Process of recording transactions in a journal.






14. 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.






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






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






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






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






20. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






22. 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.






23. Individuals or organizations entitled to receive payments






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






25. 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






26. 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.






27. 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






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






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






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






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






32. Uncertainty about expected return.






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






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






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






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






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






38. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






40. 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.






41. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






44. A corporation's basic ownership share.






45. Business owned by one person that is not organized as a corporation.






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






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






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






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






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