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






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






3. A corporation's basic ownership share.






4. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






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






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






8. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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






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






13. 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).






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






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






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






17. Individuals or organizations that owe money.






18. 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.






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






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






21. 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.






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






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






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






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






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






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






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






29. 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






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






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






32. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






34. Business owned by two or more people.






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






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






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






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






39. Length of time covered by financial statements; also called reporting period.






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






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






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






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






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






45. 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.






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






47. 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.






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






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






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