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






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






3. 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).






4. 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.






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






6. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






7. Persons using accounting information who are not directly involved in running the organization.






8. The principle prescribing that revenue is recognized when earned.






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






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






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






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






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






14. 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.






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






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






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






18. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.






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






20. Assets put into the business by the owner.






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






22. Business owned by a single person.






23. Excess of expenses over revenues for a period.






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






25. Uncertainty about expected return.






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






27. 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.






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






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






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






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






32. 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






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






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






35. 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.






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






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






38. An expense that changes from period to perio - such as food or gasoline costs.






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






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






41. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






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






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






47. Business owned by two or more people.






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






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






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