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






2. A corporation's basic ownership share.






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






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






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






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






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






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






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






10. Assets put into the business by the owner.






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






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






13. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






15. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






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






18. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






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






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






22. 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.






23. 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.






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






25. Journal entries that affect at least three accounts.






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






27. Uncertainty about expected return.






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






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






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






31. Area of accounting aimed mainly at serving the decision-making needs of internal users.






32. 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.






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






34. Individuals hired to review financial reports and information systems of organizations.






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






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






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






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






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






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






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






42. 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.






43. Business owned by two or more people.






44. The money left over when income exceeds expenditure.






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






46. 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






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






48. 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.






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






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