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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. 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.






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






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






4. 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.






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






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






7. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






8. A corporation's basic ownership share.






9. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






10. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






11. Individuals hired to review financial reports and information systems of organizations.






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






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






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






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






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






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






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






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






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






21. Business owned by two or more people.






22. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






25. 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.






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






27. The money left over when income exceeds expenditure.






28. Process of transferring journal entry information to the ledger; computerized systems automate this process.






29. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






31. 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.






32. Assets put into the business by the owner.






33. Journal entries that affect at least three accounts.






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






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






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






37. Excess of expenses over revenues for a period.






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






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






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






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






42. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






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






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






47. Items paid for in advance of receiving their benefits. Classified as assets.






48. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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