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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. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






22. 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






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






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






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

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






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






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






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






30. 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.






31. Business owned by a single person.






32. 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






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






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






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






36. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






37. 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






38. 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.






39. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






41. Process of recording transactions in a journal.






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






43. Area of accounting aimed mainly at serving external users.






44. 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.






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






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






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






48. Uncertainty about expected return.






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






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