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






2. 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.






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






4. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






5. 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).






6. The money left over when income exceeds expenditure.






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






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






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






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






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






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






13. Individuals or organizations entitled to receive payments






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






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






16. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






18. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






19. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






21. Outflows or using up of assets as part of operations of business to generate sales.






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






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






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






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






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






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






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






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






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






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






32. Owners of a corporation who usually receive dividends. Also called stockholders.






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






34. Business owned by a single person.






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






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






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






38. Uncertainty about expected return.






39. 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






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






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






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






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






44. A corporation's basic ownership share.






45. 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.






46. Assets put into the business by the owner.






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






48. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






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







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