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






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






3. 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.






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






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






6. 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).






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






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






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






10. A corporation's basic ownership share.






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






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






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






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






15. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






16. Owners of a corporation who usually receive dividends. Also called shareholders.






17. Excess of expenses over revenues for a period.






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






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






20. 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).






21. 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






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






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






24. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






25. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






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






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






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






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






32. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






36. 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.






37. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






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






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






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






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






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






45. 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






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






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






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






49. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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