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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 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.






2. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






3. A corporation's basic ownership share.






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






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






6. All purpose journal for recording the debits and credits of transactions and events.






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






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






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






10. Journal entries that affect at least three accounts.






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






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






13. Uncertainty about expected return.






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






15. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






18. 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.






19. Assets put into the business by the owner.






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






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






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






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






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






25. Goals that are specific - measurable - attainable - realistic - and time bound.






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






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






28. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






30. 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).






31. 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.






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






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






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






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






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






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






38. 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






39. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






40. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






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






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






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






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






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






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






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






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






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