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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. Total liabilities / owner's equity
Cost Benefit
Current Ratio
Debit to Equity
Selling Expenses

2. Difference between gross margin and operating expense
Long-term Liabilities
Materiality
Income from Operations
Operating Expenses

3. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Retained Earnings
Sales Returns and Allowances
Operating Expenses
Profit Margin

4. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Conservation
Net Sales
Consistency
Property - Plant - and Equipment

5. Accounts reflect the amount of assets invested by stockholders
Qualitative Characteristics
Return on Equity
Contributed Capital
Income from Operations

6. Cost of storing goods and preparing them for sale
Selling Expenses
Full Disclosure
Comparability
Working Capital

7. Expenses incurred in running a business other than the cost of goods sold
Profit Margin
Net Income
Net Sales
Operating Expenses

8. The relative importance of an item or event
Profit Margin
Asset Turnover
Net Income
Materiality

9. Final figure of an income statement
Asset Turnover
Net Income
Normal Operating Cycle
Understandability

10. The expense for federal - state - and local taxes on corporate income
Income Taxes
Operating Expenses
Materiality
Cost of goods sold

11. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Qualitative Characteristics
Retained Earnings
Normal Operating Cycle
Sales Returns and Allowances

12. Total cash sales and total credit sales during an accounting period
Income from Operations
Investments
Gross Sales
Current Assets

13. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Property - Plant - and Equipment
Gross Sales
Current Assets
Working Capital

14. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Current Liabilities
Other Revenues and Expenses
Materiality

15. Net income / (average owner's equity/2)
Net Income
Sales Returns and Allowances
Return on Equity
Asset Turnover

16. Not related to a company's operating activities
Income from Operations
Net Sales
Other Revenues and Expenses
Conservation

17. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
General and Administrative Expenses
Other Revenues and Expenses
Net Income

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

19. FASB established standards to facilitate interpretation of accounting information
Understandability
Cost of goods sold
Comparability
Qualitative Characteristics

20. Net income / (average total assets/2)
Cost of goods sold
Return on Assets
Gross Margin
Debit to Equity

21. Current assets - current liabilities = working capital
Selling Expenses
Return on Assets
Contributed Capital
Working Capital

22. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
General and Administrative Expenses
Contributed Capital
Retained Earnings
Understandability

23. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Conservation
Current Liabilities
Understandability
Net Income

24. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Ratio
Current Liabilities
Net Sales
Retained Earnings

25. 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
Operating Expenses
Cost of goods sold
Income from Operations
Investments

26. The difference between net sales and the cost of goods sold
Working Capital
Debit to Equity
Gross Margin
Income Taxes

27. Net income / net sales
Full Disclosure
Property - Plant - and Equipment
Profit Margin
Gross Sales

28. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Working Capital
Debit to Equity
Retained Earnings

29. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Normal Operating Cycle
Net Income
Gross Margin

30. The average time it needs to go from spending cash to receiving cash
Normal Operating Cycle
Current Liabilities
Gross Sales
Materiality

31. Benefit gained from providing information should be greater than the cost of providing it
Understandability
Net Income
Operating Expenses
Cost Benefit

32. Requires all financial statements presents all information relevant to users understanding of statements
Return on Assets
Net Income
Operating Expenses
Full Disclosure

33. Current assets / current liabilities
Current Ratio
Net Income
Profit Margin
Understandability

34. Tangible long-term assets used in a business day to day operations
Net Income
Contributed Capital
Property - Plant - and Equipment
Net Sales

35. Net sales / (average total assets/2)
Normal Operating Cycle
Working Capital
Current Liabilities
Asset Turnover