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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. List of accounts and balances prepared before accounting adjustments are recorded and posted.






2. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






3. Business owned by a single person.






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






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






6. Assets put into the business by the owner.






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






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






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






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






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






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






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






14. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






15. Excess of expenses over revenues for a period.






16. Individuals or organizations that owe money.






17. 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.






18. A corporation's basic ownership share.






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






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






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






22. Individuals or organizations entitled to receive payments






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






24. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






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






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






29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






31. Persons using accounting information who are directly involved in managing the organization.






32. The money left over when income exceeds expenditure.






33. 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).






34. 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.






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






36. 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.






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






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






39. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






40. Rules that specify acceptable accounting practices.






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






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






43. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






45. 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.






46. 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.






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






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






49. 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






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







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