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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. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






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






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






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






7. Loaning or giving money to a business in orer to save it from bankruptcy.






8. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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


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






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






12. 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.






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






14. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






17. Gross increase in equity from a company's business activities that earn income.






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






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






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






21. Individuals or organizations that owe money.






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






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






24. Process of recording transactions in a journal.






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






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






27. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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






29. 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.






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






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






32. Record containing all accounts (with amounts) for a business.






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






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






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






36. 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






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






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






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






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






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






42. Journal entries that affect at least three accounts.






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






44. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






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






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






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






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