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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 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.






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






3. Excess of expenses over revenues for a period.






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






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






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






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






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






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






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






11. 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.






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






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






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






15. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






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






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






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






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






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






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






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






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






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






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






28. 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.






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






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






31. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






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






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






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






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






37. 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).






38. 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.






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






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






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






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






43. Process of recording transactions in a journal.






44. 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






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






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






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






48. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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