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






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

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






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






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






6. 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.






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






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






9. Assets put into the business by the owner.






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






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






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






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






14. 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.






15. A corporation's basic ownership share.






16. 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.






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






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






19. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






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






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






23. 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).






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






25. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






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






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






29. Excess of expenses over revenues for a period.






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






31. 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.






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






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






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






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






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






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






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






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






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






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






42. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






44. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






48. 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






49. 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.






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