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






2. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






3. Uncertainty about expected return.






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






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






6. A legal entity that is seperate from its owners.






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






8. 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






9. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






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






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






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






14. Rules that specify acceptable accounting practices.






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






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






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






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






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






20. 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.






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






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






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






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






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






26. 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.






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






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






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






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






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






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






33. Process of recording transactions in a journal.






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






35. A corporation's basic ownership share.






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






37. 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.






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






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






40. Statements that show the effect of proposed transactions and events as if they had occurred.






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






42. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






44. 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.






45. 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.






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






47. Journal entries that affect at least three accounts.






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






49. Individuals or organizations that owe money.






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