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






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






3. 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.






4. 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.






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






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






7. 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.






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






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






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






11. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






13. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






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






17. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






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






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






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






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






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






24. Rules that specify acceptable accounting practices.






25. 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.






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






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






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






29. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






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






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






34. 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).






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






36. 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






37. 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.






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






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






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






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






42. 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.






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






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






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






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






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






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






49. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






50. Uncertainty about expected return.