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






2. Owners of a corporation who usually receive dividends. Also called shareholders.






3. 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






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






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






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






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






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






9. 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.






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






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






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






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






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






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






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






17. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






18. 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).






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






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






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






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






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






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






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






26. 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.






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






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






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






30. Business owned by a single person.






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






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






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






34. The money left over when income exceeds expenditure.






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






36. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






38. 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.






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






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






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






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






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






44. 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.






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






46. 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






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






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






49. 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).






50. Uncertainty about expected return.