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






2. Business owned by a single person.






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






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






5. Individuals or organizations entitled to receive payments






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






7. Independent group of full-time members responsible for setting accounting rules.






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






9. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






11. 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.






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






13. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






14. The first time a company sells shares of its stock to the public.






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






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






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






18. 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.






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






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






21. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






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






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






27. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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






31. Report of changes in equity over a period; adjusted for increases and for decreases.

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






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






34. Principle that assumes transactions and events can be expressed in money units.






35. Uncertainty about expected return.






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






37. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






38. A corporation's basic ownership share.






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






40. 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.






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






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






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






44. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






45. The money left over when income exceeds expenditure.






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






47. 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






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






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






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