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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. Business owned by two or more people.






2. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






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






6. 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.






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






8. Journal entries that affect at least three accounts.






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






10. Business owned by a single person.






11. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






12. 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.






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






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






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






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






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






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






20. Assets put into the business by the owner.






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






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






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






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






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






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






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






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






29. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






30. Income that is available after all of the essential financial commitments have been paid.






31. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






32. Goals that are specific - measurable - attainable - realistic - and time bound.






33. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






34. 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






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






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






37. Income from investments - including dividends - interest - or the sale of a property.






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






39. 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.






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






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






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






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






44. 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.






45. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






49. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






50. A corporation's basic ownership share.