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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. Expenses that remain the same regardless of the circumstances.






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. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






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






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






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






8. Excess of expenses over revenues for a period.






9. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






11. Uncertainty about expected return.






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






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






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






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






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






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






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






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






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






21. 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






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






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






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






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






26. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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






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






31. 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






32. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






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






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






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






38. Assets put into the business by the owner.






39. 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.






40. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






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






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






45. The money left over when income exceeds expenditure.






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






47. 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.






48. A tax deferred account that allows individuals to plan for their retirement.






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






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