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






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






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






4. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






6. Rules that specify acceptable accounting practices.






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






8. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






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






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






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






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






15. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






16. 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.






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






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






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






20. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






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






22. Assets put into the business by the owner.






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






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






25. Persons using accounting information who are directly involved in managing the organization.






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






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






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






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






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






31. 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






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






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






34. 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






35. 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.






36. Uncertainty about expected return.






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






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






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

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






41. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






43. Business owned by a single person.






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






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






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






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






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






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






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