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






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






3. The money left over when income exceeds expenditure.






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






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






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






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






8. Individuals or organizations entitled to receive payments






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






10. 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






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






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






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






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






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






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






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






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






19. Business owned by a single person.






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






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






22. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






23. 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






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






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






26. 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.






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






28. Individuals or organizations that owe money.






29. Business owned by two or more people.






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






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






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






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






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






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






36. 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.






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






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






39. A legal entity that is seperate from its owners.






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






41. 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.






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






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






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






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






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






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






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






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






50. 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.