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






2. Individuals or organizations entitled to receive payments






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






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






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






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






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






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






9. 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.






10. 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.






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






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






13. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






14. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






17. Monies (or sums of money) received from an investment; often in percent form.






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






19. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






21. 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.






22. Business owned by a single person.






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






24. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






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






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






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






29. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






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






32. 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.






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






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






35. Expenses that remain the same regardless of the circumstances.






36. 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






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






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






39. A corporation's basic ownership share.






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






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






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






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






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






45. 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.






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






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






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






49. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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