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






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






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






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






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






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






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






8. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






9. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






12. Journal entries that affect at least three accounts.






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






14. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






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






17. 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.






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






19. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






20. Excess of expenses over revenues for a period.






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






22. 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.






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






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

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






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






27. Persons using accounting information who are directly involved in managing the organization.






28. 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.






29. 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.






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






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






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






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






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






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






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






37. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






38. 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.






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






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






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






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






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






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






45. Rules that specify acceptable accounting practices.






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






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






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






49. Individuals or organizations that owe money.






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