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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 corporation's basic ownership share.






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






3. Excess of expenses over revenues for a period.






4. 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.






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






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






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






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






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






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






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






12. Rules that specify acceptable accounting practices.






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






14. Uncertainty about expected return.






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






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






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






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






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






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






22. Individuals or organizations that owe money.






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






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






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






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






27. 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.






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






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






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






31. Business owned by one person that is not organized as a corporation.






32. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






34. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






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






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






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






40. 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.






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






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






43. Individuals or organizations entitled to receive payments






44. 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






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






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






47. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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