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






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






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






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






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






7. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






8. 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.






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






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






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






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






13. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






15. 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.






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






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






18. 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






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






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






21. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






22. Uncertainty about expected return.






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






24. Business owned by two or more people.






25. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






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






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






32. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






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






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






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






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






37. Report of changes in equity over a period; adjusted for increases and for decreases.


38. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






40. Business owned by a single person.






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






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






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






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






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






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






47. The money left over when income exceeds expenditure.






48. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






49. 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.






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