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






2. 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.






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






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






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






6. Assets put into the business by the owner.






7. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






10. 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.






11. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






14. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






15. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






16. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






18. 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






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






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






21. Difference between total debits and total credits (including the beginning balance) for an account.






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






23. Journal entries that affect at least three accounts.






24. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






25. 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.






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






27. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






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






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






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






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






35. Process of recording transactions in a journal.






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






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






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






39. 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.






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






41. Business owned by one person that is not organized as a corporation.






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






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






44. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






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






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






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






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