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






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






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






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






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






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






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






8. A corporation's basic ownership share.






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






10. 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.






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






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






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






14. 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.






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






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






17. 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






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






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






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






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






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






23. 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.






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






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






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






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






28. Individuals or organizations that owe money.






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






30. 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






31. Business owned by two or more people.






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






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






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






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






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






37. 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.






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


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






40. 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.






41. Journal entries that affect at least three accounts.






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






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






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






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






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






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






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






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






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