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






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






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






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






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






6. Uncertainty about expected return.






7. 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.






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






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






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






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






12. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






13. 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.






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






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






16. Process of recording transactions in a journal.






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






18. A corporation's basic ownership share.






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






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






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






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






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






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






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






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






28. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






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






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






37. The money left over when income exceeds expenditure.






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






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






40. 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.






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






42. 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.






43. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






46. 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






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






48. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






49. Rules that specify acceptable accounting practices.






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