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






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






3. A corporation's basic ownership share.






4. Individuals or organizations entitled to receive payments






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






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






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






8. Journal entries that affect at least three accounts.






9. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






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






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






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






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






18. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






21. Excess of expenses over revenues for a period.






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






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






24. 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






25. 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






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






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






28. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






29. Assets put into the business by the owner.






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






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






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






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






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






35. Individuals or organizations that owe money.






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






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






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






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






40. Rules that specify acceptable accounting practices.






41. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






42. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






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






46. Exchanges of economic value between one entity and another entity.






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






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






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






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