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






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






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






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






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






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






7. A corporation's basic ownership share.






8. 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.






9. 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






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






11. Excess of expenses over revenues for a period.






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






13. Length of time covered by financial statements; also called reporting period.






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






15. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






18. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






22. Principle that assumes transactions and events can be expressed in money units.






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






24. 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






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






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






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






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






29. Journal entries that affect at least three accounts.






30. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






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






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

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






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






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






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






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






40. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






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






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






44. Area of accounting aimed mainly at serving external users.






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






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






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






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






49. 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.






50. Rules that specify acceptable accounting practices.