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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 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.






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






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






4. 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






5. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






7. The combining of two or more comapnies into one larger company.






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






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






10. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






13. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






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






17. Loaning or giving money to a business in orer to save it from bankruptcy.






18. Process of recording transactions in a journal.






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

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






21. 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.






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






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






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






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






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






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






28. 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






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






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






31. The first time a company sells shares of its stock to the public.






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






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






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






35. 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.






36. Assets put into the business by the owner.






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






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






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






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






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






42. 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






43. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






46. 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.






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






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






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






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