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






2. Assets put into the business by the owner.






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






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






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






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






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






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






9. Individuals or organizations entitled to receive payments






10. Tool used to show the effects of transactions and events on individual accounts.






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






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






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






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






15. 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.






16. Uncertainty about expected return.






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






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






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






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






21. Rules that specify acceptable accounting practices.






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






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






24. The money left over when income exceeds expenditure.






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






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






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






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






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






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






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






32. 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.






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






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






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






36. 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.






37. All purpose journal for recording the debits and credits of transactions and events.






38. Income from investments - including dividends - interest - or the sale of a property.






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






40. 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






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






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






43. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






45. Persons using accounting information who are not directly involved in running the organization.






46. 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.






47. Business owned by a single person.






48. 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).






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






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