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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. 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).






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






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






4. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






5. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






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






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






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






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






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






14. Assets put into the business by the owner.






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






16. Business owned by a single person.






17. Uncertainty about expected return.






18. The money left over when income exceeds expenditure.






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

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






21. Journal entries that affect at least three accounts.






22. 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.






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






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






25. 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






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






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






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






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






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






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






32. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






35. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






36. Business owned by two or more people.






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






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






39. 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).






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






41. 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






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






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






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






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






46. 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.






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






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






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






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