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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 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






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






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






4. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






5. 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.






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






8. All purpose journal for recording the debits and credits of transactions and events.






9. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






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






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






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






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






16. Gross increase in equity from a company's business activities that earn income.






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






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






19. Process of recording transactions in a journal.






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






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






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






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






24. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






27. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






29. 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






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






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






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






33. Excess of expenses over revenues for a period.






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






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






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






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






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






39. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






47. 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.






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






49. Uncertainty about expected return.






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







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