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






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






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






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






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






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






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






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






9. 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.






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






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






12. Business owned by a single person.






13. Business owned by two or more people.






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






15. 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.






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






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






18. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






19. 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).






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






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






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






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






24. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






27. 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.






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






29. Individuals or organizations that owe money.






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






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






32. 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






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






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






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






36. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






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






39. 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






40. 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.






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






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






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






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






45. Items paid for in advance of receiving their benefits. Classified as assets.






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






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

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48. 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






49. Rules that specify acceptable accounting practices.






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