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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 not backed by collateral - but by the promise of the borrower to repay it.






2. A tax deferred account that allows individuals to plan for their retirement.






3. Activities within an organization that can affect the accounting equation.






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






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






6. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






8. A corporation's basic ownership share.






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






10. Individuals or organizations that owe money.






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






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






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






14. Rules that specify acceptable accounting practices.






15. 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






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






17. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






20. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






21. The principle prescribing that revenue is recognized when earned.






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






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






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






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






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






27. Business owned by two or more people.






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






29. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






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






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






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






34. 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






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






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






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






38. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






39. 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.






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






41. 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.






42. Uncertainty about expected return.






43. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






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






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






47. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






48. Outflows or using up of assets as part of operations of business to generate sales.






49. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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