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






2. 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






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






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






5. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






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






8. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






9. Excess of expenses over revenues for a period.






10. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






13. A tax deferred account that allows individuals to plan for their retirement.






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






15. Rules that specify acceptable accounting practices.






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






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






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






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






20. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






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






25. Individuals or organizations entitled to receive payments






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






27. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






29. 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.






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






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






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






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






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






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






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






37. Journal entries that affect at least three accounts.






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






39. 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.






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






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






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






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






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






45. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






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






49. 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.






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