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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. Current assets / current liabilities
Current Ratio
Contributed Capital
Income from Operations
Cost Benefit

2. The difference between net sales and the cost of goods sold
Comparability
Selling Expenses
Gross Margin
Return on Assets

3. The average time it needs to go from spending cash to receiving cash
Return on Assets
Normal Operating Cycle
Gross Sales
Profit Margin

4. Once a company adopted an accounting procedure - it must use it from one period to the next
Net Income
Consistency
Full Disclosure
Cost of goods sold

5. Current assets - current liabilities = working capital
Working Capital
Conservation
Current Ratio
Profit Margin

6. The expense for federal - state - and local taxes on corporate income
Sales Returns and Allowances
Current Liabilities
Debit to Equity
Income Taxes

7. FASB established standards to facilitate interpretation of accounting information
Asset Turnover
Return on Equity
Qualitative Characteristics
Contributed Capital

8. Difference between gross margin and operating expense
Property - Plant - and Equipment
Other Revenues and Expenses
Selling Expenses
Income from Operations

9. Tangible long-term assets used in a business day to day operations
Property - Plant - and Equipment
Current Ratio
Debit to Equity
Other Revenues and Expenses

10. The relative importance of an item or event
Profit Margin
Full Disclosure
Working Capital
Materiality

11. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Working Capital
Comparability
Consistency
Income Taxes

12. Net income / (average owner's equity/2)
Return on Equity
Profit Margin
Sales Returns and Allowances
Understandability

13. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Property - Plant - and Equipment
Cost Benefit
Other Revenues and Expenses

14. Net income / (average total assets/2)
Return on Assets
Full Disclosure
Profit Margin
Investments

15. Cost of storing goods and preparing them for sale
Asset Turnover
Debit to Equity
Comparability
Selling Expenses

16. 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
Other Revenues and Expenses
Return on Equity
Investments
Long-term Liabilities

17. Net income / net sales
Net Sales
Profit Margin
Normal Operating Cycle
Income from Operations

18. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Consistency
Long-term Liabilities
Gross Margin
Conservation

19. Total liabilities / owner's equity
Contributed Capital
Current Assets
Net Sales
Debit to Equity

20. Accounts reflect the amount of assets invested by stockholders
Return on Assets
Net Income
Contributed Capital
Comparability

21. Benefit gained from providing information should be greater than the cost of providing it
Contributed Capital
Gross Sales
Return on Equity
Cost Benefit

22. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Retained Earnings
Investments
Long-term Liabilities

23. Net sales / (average total assets/2)
Operating Expenses
Normal Operating Cycle
Asset Turnover
Qualitative Characteristics

24. Requires all financial statements presents all information relevant to users understanding of statements
Understandability
Cost Benefit
Sales Returns and Allowances
Full Disclosure

25. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Asset Turnover
Long-term Liabilities
Net Sales
Profit Margin

26. Total cash sales and total credit sales during an accounting period
Gross Sales
Current Ratio
Current Liabilities
Sales Returns and Allowances

27. 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
Current Liabilities
Current Assets
Qualitative Characteristics

28. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Understandability
Operating Expenses
General and Administrative Expenses
Consistency

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

30. Obligations that must be satisfied within 1 year or within normal operating cycle
Gross Sales
Net Sales
Current Liabilities
Other Revenues and Expenses

31. Expenses incurred in running a business other than the cost of goods sold
Working Capital
Materiality
Operating Expenses
Net Income

32. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Contributed Capital
Cost of goods sold
Retained Earnings
Working Capital

33. Final figure of an income statement
Cost Benefit
Qualitative Characteristics
Net Sales
Net Income

34. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Comparability
Debit to Equity
Consistency
Current Assets

35. Not related to a company's operating activities
Understandability
Other Revenues and Expenses
Income from Operations
Current Liabilities