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






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






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






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






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






6. Expenses that remain the same regardless of the circumstances.






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






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






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






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






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






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






13. 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.






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






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






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






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






18. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






20. 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.






21. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






22. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






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






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






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






29. The money left over when income exceeds expenditure.






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






31. Journal entries that affect at least three accounts.






32. 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






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






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






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






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






37. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






40. 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.






41. 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.






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






43. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






45. Business owned by two or more people.






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






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






48. 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.






49. Uncertainty about expected return.






50. 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.