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






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






3. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






4. Individuals or organizations that owe money.






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






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






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






8. Journal entries that affect at least three accounts.






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






10. 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.






11. 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.






12. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






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






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






17. Business owned by two or more people.






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






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






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






21. 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.






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






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






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






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






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






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






28. 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






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






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






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






32. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






34. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






35. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






37. All purpose journal for recording the debits and credits of transactions and events.






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






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






40. 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.






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






42. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






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






46. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






49. 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.






50. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.