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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. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






3. Uncertainty about expected return.






4. Business owned by two or more people.






5. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






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






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






9. 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.






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






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






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






13. 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).






14. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






15. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






16. 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.






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






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






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






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






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






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






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






24. 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






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






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






27. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






29. Assets put into the business by the owner.






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






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






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






33. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






34. 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.






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






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






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






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






39. Process of recording transactions in a journal.






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






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






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






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






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






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






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






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






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






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






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







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