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






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






3. 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.






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






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






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






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






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






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






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






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






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






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






14. 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.






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






16. 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.






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






18. 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






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






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






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






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






23. Independent group of full-time members responsible for setting accounting rules.






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






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






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






27. Activities within an organization that can affect the accounting equation.






28. The principle prescribing that revenue is recognized when earned.






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






30. 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).






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






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






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






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






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






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






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






38. Uncertainty about expected return.






39. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






40. 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.






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






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






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






44. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






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






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






49. Area of accounting aimed mainly at serving the decision-making needs of internal users.






50. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.