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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 their balances at a point in time; total debit balances must equal total credit balances.






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






3. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






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






7. A tax deferred account that allows individuals to plan for their retirement.






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






9. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






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






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






13. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






14. Uncertainty about expected return.






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






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






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






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






20. Balance sheet that broadly groups assets - liabilities - and equity accounts.






21. The principle prescribing that revenue is recognized when earned.






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






23. 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






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






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






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






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






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






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






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






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






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






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






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






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






36. 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.






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






38. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






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






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






43. Individuals or organizations entitled to receive payments






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






45. Journal entries that affect at least three accounts.






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






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






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






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






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







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