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






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






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






4. A corporation's basic ownership share.






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






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






7. Process of recording transactions in a journal.






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






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






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






11. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






12. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






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






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






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






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






20. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






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






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






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






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






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






26. Excess of expenses over revenues for a period.






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






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






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






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






31. List of accounts used by a company' includes and identification number for each account.






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






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






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






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






36. 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.






37. Individuals or organizations that owe money.






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






39. 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.






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






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






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






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






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






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






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






47. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






48. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






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