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






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






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






4. Business owned by two or more people.






5. An expense that changes from period to perio - such as food or gasoline costs.






6. Process of recording transactions in a journal.






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






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






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






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






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






12. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






13. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






15. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






16. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






17. 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.






18. 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.






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






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






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






22. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






25. 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






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






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






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






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






30. 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.






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






32. 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.






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






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






35. 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.






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






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






38. 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.






39. Excess of expenses over revenues for a period.






40. 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.






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






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






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

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






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






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






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






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






49. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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







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