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






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






4. A corporation's basic ownership share.






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






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






7. 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.






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






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






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






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






12. 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.






13. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






16. Assets put into the business by the owner.






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






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






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






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






21. Journal entries that affect at least three accounts.






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






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






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






25. Individuals or organizations entitled to receive payments






26. The money left over when income exceeds expenditure.






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






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






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






30. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






33. 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.






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






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






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






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






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






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






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






41. Uncertainty about expected return.






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






43. 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.






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






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






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






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






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






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






50. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.







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