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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. Uncertainty about expected return.






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






3. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






5. Process of recording transactions in a journal.






6. 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.






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






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






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






10. 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






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






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






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






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






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






16. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






19. Statements that show the effect of proposed transactions and events as if they had occurred.






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






21. 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.






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






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






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






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






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






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






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






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






30. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






32. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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






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






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






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






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






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






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






42. Assets put into the business by the owner.






43. The principle prescribing that revenue is recognized when earned.






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






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






46. 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






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






48. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






49. 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.






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