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






2. 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.






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






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






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






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






7. Independent group of full-time members responsible for setting accounting rules.






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






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






10. 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.






11. Journal entries that affect at least three accounts.






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






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






14. 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.






15. Area of accounting aimed mainly at serving external users.






16. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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

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18. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






19. Business owned by two or more people.






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






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






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






23. Individuals or organizations that owe money.






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






25. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






26. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






28. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






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






32. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






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






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






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






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






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






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






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






42. A corporation's basic ownership share.






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






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






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






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






47. 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






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






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






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