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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. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






3. 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.






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






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






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






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






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






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






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






12. Income that is available after all of the essential financial commitments have been paid.






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






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






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






16. 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.






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






18. 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.






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






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






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






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






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






24. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






27. Uncertainty about expected return.






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






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






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






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






32. 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.






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






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






35. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






36. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






37. 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.






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






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






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






41. 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






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






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






44. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






46. 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.






47. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






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