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






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






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






4. 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






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






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






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






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






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






10. Rules that specify acceptable accounting practices.






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






12. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






14. Tool used to show the effects of transactions and events on individual accounts.






15. 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






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






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






18. 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).






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






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






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

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






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






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






25. 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.






26. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






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






30. 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.






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






32. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






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






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






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






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






39. 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.






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






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






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






43. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






45. 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.






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






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






48. 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.






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






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