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






2. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






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






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






6. Monies (or sums of money) received from an investment; often in percent form.






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






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






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






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






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






12. 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






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






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






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






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






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






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






19. Principle that assumes transactions and events can be expressed in money units.






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






21. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






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






24. 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.






25. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






27. 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.






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






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






30. 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






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






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






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






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






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






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






37. 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.






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






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






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






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






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






43. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






45. 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.






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






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






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






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

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







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