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






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






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






5. 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.






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






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






8. 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






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






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






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






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






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






14. 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).






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






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






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






18. A corporation's basic ownership share.






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






20. Journal entries that affect at least three accounts.






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






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






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






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






25. Business owned by a single person.






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






27. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






28. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






31. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






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






34. 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.






35. Individuals or organizations that owe money.






36. Business owned by two or more people.






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






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






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






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






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






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






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






44. 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.






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






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






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






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






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






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