Test your basic knowledge |

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






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






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






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






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






7. 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






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






9. 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.






10. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






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






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






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






14. Individuals or organizations that owe money.






15. 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.






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






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






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






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






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






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






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






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






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






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






26. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






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






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






30. 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.






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






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






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






34. 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.






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






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






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






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






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






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






41. 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).






42. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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






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






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






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






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






49. Individuals or organizations entitled to receive payments






50. The combining of two or more comapnies into one larger company.