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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. 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






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






3. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






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






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






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






9. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






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






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






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






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






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






16. 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.






17. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






19. The money left over when income exceeds expenditure.






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






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






22. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






23. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






25. 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.






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






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






28. 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.






29. Record containing all accounts (with amounts) for a business.






30. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






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






34. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






36. 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).






37. 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.






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






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






40. Excess of expenses over revenues for a period.






41. 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






42. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






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

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






Can you answer 50 questions in 15 minutes?



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