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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 loan that is backed by collateral such as cars - houses - or other assets.






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






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






4. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






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






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






13. 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.






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






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






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






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






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






19. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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

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






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






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






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






25. Individuals hired to review financial reports and information systems of organizations.






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






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






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






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






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






31. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






34. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






35. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






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






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






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






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






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






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






45. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






48. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






49. 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






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