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






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






3. 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.






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






5. 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






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






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






8. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






9. Uncertainty about expected return.






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






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






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






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






14. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






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






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






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






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






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






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






22. 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.






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






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






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






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






27. Process of recording transactions in a journal.






28. 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.






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






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






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






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






33. Rules that specify acceptable accounting practices.






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






35. Assets put into the business by the owner.






36. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






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






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






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






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






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






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






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






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






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






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






48. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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