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






2. 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.






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






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






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






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






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






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






9. Business owned by a single person.






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






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






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






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






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






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






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






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






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






19. 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.






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






21. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






22. 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.






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






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






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






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






27. 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.






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






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






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






31. Business owned by two or more people.






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






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






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






35. 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.






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






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






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






39. Monies (or sums of money) received from an investment; often in percent form.






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






41. 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.






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






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






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






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






46. 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.






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






48. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






50. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.