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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. 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.






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






3. The value of a future cash steam discounted at the appropriate market interest rate.






4. 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.






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






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






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






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






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






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






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






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






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






14. 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).






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






16. 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.






17. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






20. Individuals or organizations entitled to receive payments






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






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






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






24. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






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






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






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






29. 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






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






31. 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






32. 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






33. Individuals or organizations that owe money.






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. Expenses that remain the same regardless of the circumstances.






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






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






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






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






40. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






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






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






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






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






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






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






48. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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