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






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






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






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






5. Individuals or organizations that owe money.






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






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






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






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






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






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






12. 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).






13. The money left over when income exceeds expenditure.






14. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






15. 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.






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






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






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






19. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






20. 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.






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






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






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






24. 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.






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






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






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






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






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






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






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






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






33. Journal entries that affect at least three accounts.






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






35. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






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






39. 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.






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






41. 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.






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






43. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






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






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






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






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






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






49. Business owned by one person that is not organized as a corporation.






50. 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