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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. 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






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






3. The money left over when income exceeds expenditure.






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






5. 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.






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






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






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






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






11. Business owned by a single person.






12. 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).






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






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






15. 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






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






17. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






18. Expenses that remain the same regardless of the circumstances.






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






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






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






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






23. Business owned by two or more people.






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






25. 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






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






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






28. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






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






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






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






33. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






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






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






36. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






38. Excess of expenses over revenues for a period.






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






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






41. 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.






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






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






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






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






46. A corporation's basic ownership share.






47. 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.






48. The twelve month period that ends when a company's sales activities are at their lowest point.






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

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