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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. Exchanges of economic value between one entity and another entity.






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






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






4. The twelve month period that ends when a company's sales activities are at their lowest point.






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






6. Individuals or organizations that owe money.






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






8. Excess of expenses over revenues for a period.






9. 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.






10. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






11. 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






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






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






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






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






16. 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.






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






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






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






20. Uncertainty about expected return.






21. 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






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






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






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






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






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






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






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






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






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






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






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






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






34. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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. Business owned by a single person.






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






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






40. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






41. 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.






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






43. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






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






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






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






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






49. 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






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