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






2. 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.






3. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






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






7. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






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






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






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






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






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






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. 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.






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






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






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






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






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






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






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






26. Outflows or using up of assets as part of operations of business to generate sales.






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






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






29. Expenses that remain the same regardless of the circumstances.






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






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






32. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






34. Uncertainty about expected return.






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






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






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






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






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






40. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






41. 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.






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






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






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






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






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






47. A corporation's basic ownership share.






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






49. 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).






50. 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.