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






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






3. 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.






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






5. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






7. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






9. Individuals or organizations that owe money.






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






11. 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.






12. Business owned by a single person.






13. Journal entries that affect at least three accounts.






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






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






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






17. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






18. 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.






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






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






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






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






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

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






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






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






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






29. 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






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






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






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






33. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






35. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






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






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






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






42. Persons using accounting information who are not directly involved in running the organization.






43. Rules that specify acceptable accounting practices.






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






45. 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.






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






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






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






49. The money left over when income exceeds expenditure.






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