Test your basic knowledge |

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






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






3. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






4. 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.






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






6. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






9. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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






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






14. Individuals or organizations entitled to receive payments






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






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






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






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






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






20. 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






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






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






23. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






25. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






26. Rules that specify acceptable accounting practices.






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






28. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






29. 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.






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






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






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






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






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






35. 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.






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






37. Individuals hired to review financial reports and information systems of organizations.






38. Process of recording transactions in a journal.






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






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






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






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






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






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






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






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






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






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






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






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