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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. List of accounts used by a company' includes and identification number for each account.






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






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






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






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






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






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






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






9. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






11. 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






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






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






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






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






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






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






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






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






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






21. Process of recording transactions in a journal.






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






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






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






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






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






27. 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.






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






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






31. The money left over when income exceeds expenditure.






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






33. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






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






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






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






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






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






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






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






45. 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.






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






47. Exchanges of economic value between one entity and another entity.






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






49. 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.






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