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






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






3. 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.






4. 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.






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






6. 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).






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






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






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






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






11. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






13. Journal entries that affect at least three accounts.






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






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






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






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






18. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






19. 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.






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






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






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






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


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






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






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






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






28. A corporation's basic ownership share.






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






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






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






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






33. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






37. Process of recording transactions in a journal.






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






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






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






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






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






43. 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.






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






45. 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.






46. Individuals or organizations entitled to receive payments






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






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






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






50. A legal entity that is seperate from its owners.