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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. The money left over when income exceeds expenditure.






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






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






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






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






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






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






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






9. Individuals or organizations entitled to receive payments






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






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






12. Activities within an organization that can affect the accounting equation.






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






14. All purpose journal for recording the debits and credits of transactions and events.






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






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






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






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






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






20. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






22. A corporation's basic ownership share.






23. Business owned by a single person.






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






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






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






27. Assets put into the business by the owner.






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






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






30. Individuals or organizations that owe money.






31. 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






32. A tax deferred account that allows individuals to plan for their retirement.






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






34. 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.






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






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






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






40. 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.






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






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






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






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






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






46. 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).






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






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






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






50. 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.