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






2. 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.






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






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






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






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






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






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






9. 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.






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






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






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






13. Business owned by a single person.






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






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






16. 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






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






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






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






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






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






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






23. Individuals or organizations that owe money.






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






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






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






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






28. 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.






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






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






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






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






34. 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.






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






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






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






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






39. 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






40. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






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






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






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






44. Individuals or organizations entitled to receive payments






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






46. 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).






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






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






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






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