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






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






3. 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.






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






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






6. Assets put into the business by the owner.






7. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






8. Business owned by two or more people.






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






10. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






17. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






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






21. Individuals or organizations that owe money.






22. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






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






26. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






29. 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.






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

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






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






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






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






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






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






37. 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.






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






39. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






40. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






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






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






45. Uncertainty about expected return.






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






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






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






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






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