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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. Business owned by a single person.






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






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






4. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






5. 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.






6. 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






7. Assets put into the business by the owner.






8. 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






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






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






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






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






13. 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.






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






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






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






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






18. 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.






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






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






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






22. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






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






24. Exchanges of economic value between one entity and another entity.






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






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

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27. 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.






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






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






30. 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






31. Uncertainty about expected return.






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






33. Journal entries that affect at least three accounts.






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






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






36. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






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






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






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






43. A corporation's basic ownership share.






44. List of accounts used by a company' includes and identification number for each account.






45. 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).






46. 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.






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






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






49. Process of recording transactions in a journal.






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