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






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






3. Process of recording transactions in a journal.






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






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






6. Individuals or organizations entitled to receive payments






7. 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).






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






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






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






11. Items paid for in advance of receiving their benefits. Classified as assets.






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






13. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






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






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






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

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






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






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






22. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






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






24. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






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






26. 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).






27. A corporation's basic ownership share.






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






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






30. Excess of expenses over revenues for a period.






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






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






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






34. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






35. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






36. 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.






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






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






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






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






41. Rules that specify acceptable accounting practices.






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






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






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






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






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






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






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






49. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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