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






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






3. Process of recording transactions in a journal.






4. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






5. Record containing all accounts (with amounts) for a business.






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






7. 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.






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






9. 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.






10. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






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

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13. Happenings that both affect an organization's financial position and can be reliably measured.






14. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






15. The principle prescribing that revenue is recognized when earned.






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






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






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






19. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






20. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






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






23. Tool used to show the effects of transactions and events on individual accounts.






24. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






26. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






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






30. Rules that specify acceptable accounting practices.






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






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






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






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






35. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






36. 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.






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






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






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






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






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






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






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






44. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






45. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






47. 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.






48. Individuals or organizations entitled to receive payments






49. Business owned by a single person.






50. 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