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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. Business owned by a single person.






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






3. A corporation's basic ownership share.






4. Rules that specify acceptable accounting practices.






5. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






6. 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.






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






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






9. 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.






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






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






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






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

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






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






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






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






18. Assets put into the business by the owner.






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






20. 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.






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






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






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






24. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






27. The money left over when income exceeds expenditure.






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






29. 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).






30. 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.






31. 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






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






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






34. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






36. 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.






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






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






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






40. Expenses that remain the same regardless of the circumstances.






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






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






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






44. 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






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






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






47. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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