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






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






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






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






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






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






7. Expenses that remain the same regardless of the circumstances.






8. Rules that specify acceptable accounting practices.






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






10. 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.






11. Business owned by two or more people.






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






13. Owners of a corporation who usually receive dividends. Also called stockholders.






14. 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.






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






16. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






19. 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.






20. 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.






21. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






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






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






26. An expense that changes from period to perio - such as food or gasoline costs.






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






28. Journal entries that affect at least three accounts.






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






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






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






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






33. Exchanges of economic value between one entity and another entity.






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






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






36. 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.






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






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






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






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






41. Excess of expenses over revenues for a period.






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






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






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

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






46. 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.






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






48. Independent group of full-time members responsible for setting accounting rules.






49. 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






50. Balance sheet that broadly groups assets - liabilities - and equity accounts.