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






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






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






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






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






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






7. 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).






8. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






12. The combining of two or more comapnies into one larger company.






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






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






15. 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.






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






17. Items paid for in advance of receiving their benefits. Classified as assets.






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






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






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






21. 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.






22. 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






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






24. 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.






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






26. 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.






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






28. 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.






29. Uncertainty about expected return.






30. 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






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. Expenses that remain the same regardless of the circumstances.






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






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






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






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






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






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






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






40. Principle that assumes transactions and events can be expressed in money units.






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






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






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






44. 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.






45. A legal entity that is seperate from its owners.






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






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






48. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






49. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






50. Individuals or organizations that owe money.







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