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Financial Reporting And Analysis

Instructions:

Answer 35 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. Cost of storing goods and preparing them for sale
Current Ratio
Property - Plant - and Equipment
Consistency
Selling Expenses

2. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Net Sales
General and Administrative Expenses
Asset Turnover
Current Assets

3. Benefit gained from providing information should be greater than the cost of providing it
Gross Sales
Cost Benefit
Net Income
Sales Returns and Allowances

4. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Cost of goods sold
Income from Operations
Retained Earnings
Gross Margin

5. Net income / (average total assets/2)
Income from Operations
Return on Assets
Conservation
Return on Equity

6. Difference between gross margin and operating expense
Income from Operations
Return on Assets
Gross Margin
Qualitative Characteristics

7. Obligations that must be satisfied within 1 year or within normal operating cycle
Return on Equity
Asset Turnover
Current Liabilities
Profit Margin

8. Amount a merchandiser paid for the merchandise it sold during an accounting period
Normal Operating Cycle
Cost of goods sold
Cost Benefit
Materiality

9. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Asset Turnover
Qualitative Characteristics
Normal Operating Cycle

10. The expense for federal - state - and local taxes on corporate income
Income Taxes
Cost Benefit
Other Revenues and Expenses
Retained Earnings

11. Current assets / current liabilities
Comparability
Gross Sales
Current Ratio
Property - Plant - and Equipment

12. Net income / net sales
Net Sales
General and Administrative Expenses
Profit Margin
Other Revenues and Expenses

13. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Qualitative Characteristics
Cost of goods sold
Materiality

14. Current assets - current liabilities = working capital
Cost of goods sold
Cost Benefit
Working Capital
Materiality

15. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Working Capital
Operating Expenses
Long-term Liabilities
Asset Turnover

16. Final figure of an income statement
Gross Margin
Net Income
Property - Plant - and Equipment
Current Ratio

17. The relative importance of an item or event
Operating Expenses
Normal Operating Cycle
Investments
Materiality

18. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Long-term Liabilities
Operating Expenses
Net Sales
Property - Plant - and Equipment

19. Not related to a company's operating activities
Other Revenues and Expenses
Return on Assets
Materiality
Asset Turnover

20. Net sales / (average total assets/2)
Understandability
Asset Turnover
Income Taxes
Gross Sales

21. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Return on Equity
Sales Returns and Allowances
Investments
Return on Assets

22. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Gross Sales
Comparability
Sales Returns and Allowances
Current Assets

23. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Profit Margin
Current Ratio
Cost Benefit

24. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Current Liabilities
Net Income
Conservation
Income Taxes

25. Tangible long-term assets used in a business day to day operations
Current Assets
Property - Plant - and Equipment
Understandability
Qualitative Characteristics

26. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Other Revenues and Expenses
Comparability
Income Taxes
Selling Expenses

27. The difference between net sales and the cost of goods sold
Gross Margin
Cost of goods sold
General and Administrative Expenses
Conservation

28. Total liabilities / owner's equity
Income from Operations
Contributed Capital
Cost of goods sold
Debit to Equity

29. Net income / (average owner's equity/2)
Long-term Liabilities
Return on Equity
Full Disclosure
Understandability

30. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Gross Sales
Consistency
Long-term Liabilities

31. Assets usually long term that are not used in normal business operations and management does not plan to convert to cash within the next year
Asset Turnover
Investments
Full Disclosure
Return on Equity

32. FASB established standards to facilitate interpretation of accounting information
Retained Earnings
General and Administrative Expenses
Selling Expenses
Qualitative Characteristics

33. The average time it needs to go from spending cash to receiving cash
Current Ratio
Normal Operating Cycle
Debit to Equity
Conservation

34. Accounts reflect the amount of assets invested by stockholders
Debit to Equity
Understandability
Contributed Capital
Retained Earnings

35. Total cash sales and total credit sales during an accounting period
Gross Sales
Operating Expenses
Understandability
Return on Equity