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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. 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.






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






3. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






4. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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






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






8. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






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






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






12. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






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






16. Process of recording transactions in a journal.






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






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






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






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






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






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






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






24. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






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






27. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






29. 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.






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






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






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






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






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






35. 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






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






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






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






39. 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.






40. Journal entries that affect at least three accounts.






41. A corporation's basic ownership share.






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






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






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






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






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






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






48. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






49. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






50. 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.