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






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






3. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






8. 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.






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






10. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






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






13. Independent group of full-time members responsible for setting accounting rules.






14. 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).






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






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






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






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






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






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






22. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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






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






25. 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).






26. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






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






29. Income that is available after all of the essential financial commitments have been paid.






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






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






32. The first time a company sells shares of its stock to the public.






33. 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.






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






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






36. Assets put into the business by the owner.






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






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






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






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






41. Owners of a corporation who usually receive dividends. Also called stockholders.






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






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






44. 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






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






46. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






47. 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.






48. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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