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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. 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






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






3. Report of changes in equity over a period; adjusted for increases and for decreases.

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






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






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






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






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






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






10. A corporation's basic ownership share.






11. 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.






12. 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.






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






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






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






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






17. Business owned by a single person.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






34. 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.






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






36. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






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






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






40. 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.






41. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






42. Assets put into the business by the owner.






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






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






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






46. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






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






49. 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.






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