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






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






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






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






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






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






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






8. 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






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






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






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






12. 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






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






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






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






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






17. 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






18. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






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






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






22. List of accounts used by a company' includes and identification number for each account.






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






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






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






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






27. Area of accounting aimed mainly at serving external users.






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






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






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






31. A corporation's basic ownership share.






32. Rules that specify acceptable accounting practices.






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






34. 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.






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






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






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






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






39. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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

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






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






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






44. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






45. The money left over when income exceeds expenditure.






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






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






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






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






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