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






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






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






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






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






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






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






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






9. 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.






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






11. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






12. Rules that specify acceptable accounting practices.






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






14. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






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






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






18. Journal entries that affect at least three accounts.






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






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






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






22. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






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






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






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






28. 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.






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






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






31. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






32. Excess of expenses over revenues for a period.






33. Individuals hired to review financial reports and information systems of organizations.






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






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






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






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






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






39. 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.






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






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






42. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






44. Individuals or organizations entitled to receive payments






45. Persons using accounting information who are not directly involved in running the organization.






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






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






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






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






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