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






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






3. Individuals or organizations that owe money.






4. 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.






5. 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.






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






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






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






9. 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.






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






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






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






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






14. 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.






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






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






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






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






19. 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.






20. 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






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






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






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






24. The money left over when income exceeds expenditure.






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






26. Process of recording transactions in a journal.






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






28. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






31. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






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

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






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






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






36. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






39. 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.






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






41. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






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






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






45. Business owned by a single person.






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






47. 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.






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






49. Rules that specify acceptable accounting practices.






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