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






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






3. 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






4. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






5. 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.






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






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






8. Journal entries that affect at least three accounts.






9. 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.






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






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






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






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






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






15. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






17. Assets put into the business by the owner.






18. 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






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






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






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






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






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






24. A corporation's basic ownership share.






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






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






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






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






29. The money left over when income exceeds expenditure.






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






31. 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.






32. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






47. Individuals or organizations entitled to receive payments






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






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






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