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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. Net income / (average total assets/2)
Comparability
Debit to Equity
Property - Plant - and Equipment
Return on Assets

2. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Long-term Liabilities
Normal Operating Cycle
Understandability

3. The difference between net sales and the cost of goods sold
Investments
Cost of goods sold
Gross Margin
Consistency

4. Obligations that must be satisfied within 1 year or within normal operating cycle
Return on Equity
Current Liabilities
Net Income
Income Taxes

5. Not related to a company's operating activities
Current Liabilities
Other Revenues and Expenses
Consistency
Property - Plant - and Equipment

6. Net income / net sales
Materiality
Profit Margin
Retained Earnings
Property - Plant - and Equipment

7. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Sales Returns and Allowances
Net Income
Profit Margin
Gross Margin

8. The expense for federal - state - and local taxes on corporate income
General and Administrative Expenses
Income Taxes
Consistency
Current Assets

9. FASB established standards to facilitate interpretation of accounting information
General and Administrative Expenses
Income Taxes
Operating Expenses
Qualitative Characteristics

10. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Qualitative Characteristics
Sales Returns and Allowances
Net Income
Conservation

11. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Normal Operating Cycle
Retained Earnings
Qualitative Characteristics
Working Capital

12. Amount a merchandiser paid for the merchandise it sold during an accounting period
Conservation
Income from Operations
Current Assets
Cost of goods sold

13. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Understandability
General and Administrative Expenses
Conservation
Income Taxes

14. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Selling Expenses
Property - Plant - and Equipment
Full Disclosure

15. The relative importance of an item or event
Selling Expenses
Materiality
Conservation
Long-term Liabilities

16. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Net Income
Long-term Liabilities
Selling Expenses

17. Accounts reflect the amount of assets invested by stockholders
Contributed Capital
Comparability
Gross Sales
Full Disclosure

18. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Current Assets
Comparability
Gross Margin
Materiality

19. Total cash sales and total credit sales during an accounting period
Gross Sales
Current Liabilities
Property - Plant - and Equipment
Sales Returns and Allowances

20. Final figure of an income statement
Other Revenues and Expenses
Investments
Net Income
Current Ratio

21. Net sales / (average total assets/2)
Full Disclosure
General and Administrative Expenses
Asset Turnover
Operating Expenses

22. Tangible long-term assets used in a business day to day operations
Other Revenues and Expenses
Asset Turnover
Property - Plant - and Equipment
Net Sales

23. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
General and Administrative Expenses
Net Income
Understandability

24. Total liabilities / owner's equity
Full Disclosure
Profit Margin
Cost of goods sold
Debit to Equity

25. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Current Liabilities
Understandability
Profit Margin

26. Current assets / current liabilities
Net Income
Cost Benefit
Qualitative Characteristics
Current Ratio

27. Difference between gross margin and operating expense
Retained Earnings
Profit Margin
General and Administrative Expenses
Income from Operations

28. Current assets - current liabilities = working capital
Contributed Capital
Full Disclosure
Income Taxes
Working Capital

29. 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
Investments
Full Disclosure
General and Administrative Expenses
Gross Sales

30. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Sales Returns and Allowances
Cost of goods sold
Comparability

31. Net income / (average owner's equity/2)
Return on Equity
Materiality
Asset Turnover
Current Liabilities

32. The average time it needs to go from spending cash to receiving cash
Normal Operating Cycle
Net Sales
Asset Turnover
Selling Expenses

33. Cost of storing goods and preparing them for sale
Sales Returns and Allowances
Return on Equity
Selling Expenses
Full Disclosure

34. Once a company adopted an accounting procedure - it must use it from one period to the next
Operating Expenses
Income Taxes
Consistency
Current Assets

35. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Normal Operating Cycle
Selling Expenses
Current Ratio