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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. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






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






4. Rules that specify acceptable accounting practices.






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






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






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






8. Journal entries that affect at least three accounts.






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






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






11. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






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






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






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






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






16. The money left over when income exceeds expenditure.






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






18. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






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






22. 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






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






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






25. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






27. Individuals or organizations that owe money.






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






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






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






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






32. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






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






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






35. 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).






36. Excess of expenses over revenues for a period.






37. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






38. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






39. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






40. Loaning or giving money to a business in orer to save it from bankruptcy.






41. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






43. 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.






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






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






46. Business owned by two or more people.






47. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






48. Business owned by a single person.






49. 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.






50. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.