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






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






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






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






5. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






10. Uncertainty about expected return.






11. 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.






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






13. 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.






14. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






17. 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.






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






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






20. 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.






21. Excess of expenses over revenues for a period.






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






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






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






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






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






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






28. A corporation's basic ownership share.






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






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






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






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






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






34. 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.






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






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






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






38. 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.






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






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






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






42. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.






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






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






45. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






46. Business owned by two or more people.






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






48. Process of recording transactions in a journal.






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






50. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.







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