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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. 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.






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






3. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






5. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






7. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






8. 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






9. 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.






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






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






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






13. 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.






14. Happenings that both affect an organization's financial position and can be reliably measured.






15. 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.






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






17. Uncertainty about expected return.






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






19. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






21. Individuals or organizations entitled to receive payments






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






23. Rules that specify acceptable accounting practices.






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






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






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






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






28. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






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






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






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






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






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






37. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






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






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






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






44. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






48. Journal entries that affect at least three accounts.






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






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