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






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






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






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






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






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






7. Rules that specify acceptable accounting practices.






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






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






10. Accounting information is based on cost with potential subsequent adjustments to fair value.






11. 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).






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






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






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






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






16. 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.






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






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






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






20. 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.






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






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






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






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






25. Business owned by two or more people.






26. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






28. Individuals or organizations entitled to receive payments






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






30. 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






31. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






33. 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.






34. Journal entries that affect at least three accounts.






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






36. 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.






37. 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.






38. An expense that changes from period to perio - such as food or gasoline costs.






39. 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.






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






41. 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.






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






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






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






45. Assets put into the business by the owner.






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






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






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






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






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