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






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






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






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






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






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






7. 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.






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






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






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






11. 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.






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






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






14. 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.






15. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






16. 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.






17. 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






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






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






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

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






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






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






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






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






26. 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






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






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






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






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






31. Individuals or organizations that owe money.






32. 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.






33. Excess of expenses over revenues for a period.






34. Individuals or organizations entitled to receive payments






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






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






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






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






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






40. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






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






43. 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.






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






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






46. Journal entries that affect at least three accounts.






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






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






49. 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).






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