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






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






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






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






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






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






7. Journal entries that affect at least three accounts.






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






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






10. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






13. Process of recording transactions in a journal.






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






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






16. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






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






21. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






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






25. An expense that changes from period to perio - such as food or gasoline costs.






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






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






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






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






30. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






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






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






35. Individuals or organizations that owe money.






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






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






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






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






40. 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.






41. 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.






42. A corporation's basic ownership share.






43. 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.






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






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






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






47. 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.






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






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






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