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






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






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






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






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






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






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






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






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






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






11. 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.






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






13. 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






14. Business owned by a single person.






15. Individuals or organizations entitled to receive payments






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






17. The combining of two or more comapnies into one larger company.






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






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






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






21. 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.






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






23. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






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






26. Uncertainty about expected return.






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






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






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

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






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






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






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






34. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






37. Process of recording transactions in a journal.






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






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






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






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






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






43. Business owned by two or more people.






44. Journal entries that affect at least three accounts.






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






46. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






47. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






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






49. A corporation's basic ownership share.






50. Rules that specify acceptable accounting practices.