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






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






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






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






5. 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.






6. Business owned by two or more people.






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






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






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






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






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






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






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






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






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






16. Journal entries that affect at least three accounts.






17. 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.






18. 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.






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






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






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






22. Activities within an organization that can affect the accounting equation.






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






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






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






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






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






28. Business owned by a single person.






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






30. Individuals or organizations entitled to receive payments






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






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






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






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






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






36. 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






37. 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






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






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






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






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






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






43. Rules that specify acceptable accounting practices.






44. Monies (or sums of money) received from an investment; often in percent form.






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






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






47. Individuals or organizations that owe money.






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






49. 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.






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