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






2. 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.






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






4. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






5. 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.






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






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






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






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






10. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






11. Persons using accounting information who are directly involved in managing the organization.






12. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






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






17. 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.






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






19. 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.






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






21. 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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






37. Excess of expenses over revenues for a period.






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






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






40. Rules that specify acceptable accounting practices.






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






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






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






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






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






46. 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.






47. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






48. Assets put into the business by the owner.






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






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