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






2. Business owned by a single person.






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






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






5. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






7. 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.






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






9. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






10. Goals that are specific - measurable - attainable - realistic - and time bound.






11. Individuals or organizations that owe money.






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






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






14. 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.






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






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






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. Business owned by two or more people.






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






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






21. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






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






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






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






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






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






30. 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






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






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






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






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






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






36. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






37. A legal entity that is seperate from its owners.






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






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






40. 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.






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






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






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






44. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






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






48. Assets put into the business by the owner.






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






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