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






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






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






4. Individuals or organizations entitled to receive payments






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






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






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






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






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






10. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






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






13. 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.






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






15. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






16. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






35. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






37. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






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






40. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






43. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






44. 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






45. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






46. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






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






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