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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. Individuals or organizations entitled to receive payments






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






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






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






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






6. 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






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






8. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






11. 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.






12. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






16. The money left over when income exceeds expenditure.






17. 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






18. Business owned by a single person.






19. Owners of a corporation who usually receive dividends. Also called stockholders.






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






21. Rules that specify acceptable accounting practices.






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






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






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






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






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






27. Report of changes in equity over a period; adjusted for increases and for decreases.


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






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






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






31. 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.






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






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






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






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






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






37. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






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






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






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






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






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






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






45. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






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






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






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






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