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






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






4. Excess of expenses over revenues for a period.






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






6. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






7. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






9. 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.






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






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






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






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






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






15. 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.






16. 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






17. Process of recording transactions in a journal.






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






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






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






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






22. 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.






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






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






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






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






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






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






29. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






30. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






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






33. The money left over when income exceeds expenditure.






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






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






36. Journal entries that affect at least three accounts.






37. Individuals or organizations that owe money.






38. 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






39. 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






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






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






42. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






45. 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).






46. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






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






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