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






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






3. The money left over when income exceeds expenditure.






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






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






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






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






8. 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.






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






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






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






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






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






14. Excess of expenses over revenues for a period.






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






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






17. 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






18. A corporation's basic ownership share.






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






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






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






22. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






24. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






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






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






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






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






29. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






30. Area of accounting aimed mainly at serving the decision-making needs of internal users.






31. 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.






32. Individuals or organizations that owe money.






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






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






35. 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






36. A loan that is backed by collateral such as cars - houses - or other assets.






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






38. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






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






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






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






43. 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






44. 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.






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






46. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






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






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