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






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






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






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






5. Exchanges of economic value between one entity and another entity.






6. Individuals or organizations entitled to receive payments






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






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






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






10. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






12. 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.






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






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






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






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






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






18. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






19. A corporation's basic ownership share.






20. Gross increase in equity from a company's business activities that earn income.






21. 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.






22. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






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






24. 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.






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






26. 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.






27. The twelve month period that ends when a company's sales activities are at their lowest point.






28. 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.






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






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






31. 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






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






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






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






35. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






36. 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






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






38. Individuals or organizations that owe money.






39. The money left over when income exceeds expenditure.






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






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






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






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






44. 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






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






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






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






48. Uncertainty about expected return.






49. 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.






50. Excess of expenses over revenues for a period.