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






2. 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






3. 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.






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






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






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






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






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






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






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






11. Uncertainty about expected return.






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






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






14. Length of time covered by financial statements; also called reporting period.






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






16. Journal entries that affect at least three accounts.






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






18. 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.






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






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






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






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






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






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






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






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






27. 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






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






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






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






31. 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.






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






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






34. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






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






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






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






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






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






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






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






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






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






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






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






47. Rules that specify acceptable accounting practices.






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






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






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