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






2. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






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






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






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






7. Business owned by a single person.






8. Assets put into the business by the owner.






9. 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.






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






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






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






13. Excess of expenses over revenues for a period.






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






15. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






17. 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.






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






19. 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.






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






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






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






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






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






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






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






27. Accounting information is based on cost with potential subsequent adjustments to fair value.






28. 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.






29. Individuals or organizations entitled to receive payments






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






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






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






33. Individuals or organizations that owe money.






34. 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.






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






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






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






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






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






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






41. Business owned by two or more people.






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






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






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






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






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






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






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






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






50. Business owned by one person that is not organized as a corporation.