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






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






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






4. 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






5. List of accounts and balances prepared after period-end adjustments are recorded and posted.






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






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






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






9. Tool used to show the effects of transactions and events on individual accounts.






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






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






12. Journal entries that affect at least three accounts.






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






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






15. The twelve month period that ends when a company's sales activities are at their lowest point.






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






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






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






19. Process of recording transactions in a journal.






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






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






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






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






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






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






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






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






28. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






29. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






31. 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.






32. 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.






33. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






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






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






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






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






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






40. 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






41. Exchanges of economic value between one entity and another entity.






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






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






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






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






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






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






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






49. A corporation's basic ownership share.






50. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.







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