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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. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






2. 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).






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






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






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






6. Individuals or organizations that owe money.






7. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






8. Statements that show the effect of proposed transactions and events as if they had occurred.






9. The combining of two or more comapnies into one larger company.






10. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






12. 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.






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






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






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






17. Assets put into the business by the owner.






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






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






20. The money left over when income exceeds expenditure.






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






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






23. 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.






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

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






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






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






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






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






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






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






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






34. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






35. 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.






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






37. Uncertainty about expected return.






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






39. 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






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






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






42. Excess of expenses over revenues for a period.






43. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






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






48. 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.






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






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