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






2. Assets put into the business by the owner.






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






5. Principle that assumes transactions and events can be expressed in money units.






6. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






7. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






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






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






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






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






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






14. Excess of expenses over revenues for a period.






15. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






17. 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).






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






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






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






21. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






23. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






24. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






26. A tax deferred account that allows individuals to plan for their retirement.






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






28. The money left over when income exceeds expenditure.






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






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






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






32. 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.






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






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






35. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






36. Rules that specify acceptable accounting practices.






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






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






39. Process of transferring journal entry information to the ledger; computerized systems automate this process.






40. 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






41. 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






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






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






44. Uncertainty about expected return.






45. 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.






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






47. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






49. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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