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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. Individuals or organizations that owe money.






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






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






4. Assets put into the business by the owner.






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






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






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






8. 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.






9. 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.






10. Journal entries that affect at least three accounts.






11. 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.






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






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






14. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






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






18. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






19. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






20. Business owned by a single person.






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






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






23. Business owned by two or more people.






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






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






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






27. 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






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






29. 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.






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






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






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






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






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






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






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






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






38. 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.






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






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






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






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






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






44. 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).






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






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






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






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






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






50. 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