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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. Business owned by a single person.






2. 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.






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






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






5. 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.






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






7. 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.






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






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






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






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






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






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






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






15. 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.






16. Journal entries that affect at least three accounts.






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






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






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






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






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






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






23. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






24. Business owned by two or more people.






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






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






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






28. A written framework to guide the development - preparation - and interpretation of financial accounting information.






29. The first time a company sells shares of its stock to the public.






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






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






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






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






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






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






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






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






38. 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).






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






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






41. An expense that changes from period to perio - such as food or gasoline costs.






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






43. Assets put into the business by the owner.






44. 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






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






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






47. Area of accounting aimed mainly at serving external users.






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






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






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