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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. 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
Conservation
Income Taxes
Return on Assets

2. Once a company adopted an accounting procedure - it must use it from one period to the next
Net Sales
Consistency
Other Revenues and Expenses
Current Assets

3. 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
Gross Margin
Long-term Liabilities
Debit to Equity

4. The average time it needs to go from spending cash to receiving cash
Normal Operating Cycle
Property - Plant - and Equipment
Long-term Liabilities
Net Income

5. Not related to a company's operating activities
Return on Equity
Qualitative Characteristics
Other Revenues and Expenses
Current Assets

6. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Long-term Liabilities
Current Ratio
Income Taxes

7. Current assets / current liabilities
Current Ratio
Selling Expenses
Investments
Operating Expenses

8. Benefit gained from providing information should be greater than the cost of providing it
Debit to Equity
Return on Equity
Cost Benefit
Current Ratio

9. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Working Capital
Asset Turnover
Retained Earnings
Return on Equity

10. Final figure of an income statement
Gross Margin
Comparability
Net Income
Net Sales

11. Cost of storing goods and preparing them for sale
Asset Turnover
Normal Operating Cycle
Selling Expenses
Return on Equity

12. Net income / (average total assets/2)
Return on Assets
Income Taxes
Cost of goods sold
Net Sales

13. Total liabilities / owner's equity
Contributed Capital
Debit to Equity
Return on Assets
Gross Sales

14. The relative importance of an item or event
Materiality
Working Capital
Return on Assets
Asset Turnover

15. Net sales / (average total assets/2)
Operating Expenses
Cost Benefit
Asset Turnover
Income Taxes

16. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Net Sales
Long-term Liabilities
Profit Margin
Income from Operations

17. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Income Taxes
Income from Operations
Contributed Capital
Net Sales

18. Accounts reflect the amount of assets invested by stockholders
Property - Plant - and Equipment
Understandability
Contributed Capital
Investments

19. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Gross Sales
Normal Operating Cycle
Debit to Equity

20. Difference between gross margin and operating expense
Full Disclosure
Income from Operations
Consistency
Property - Plant - and Equipment

21. Current assets - current liabilities = working capital
Working Capital
Current Liabilities
Gross Margin
Consistency

22. Expenses incurred in running a business other than the cost of goods sold
Current Ratio
Net Sales
Operating Expenses
Gross Sales

23. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Current Assets
Comparability
Asset Turnover
Debit to Equity

24. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
General and Administrative Expenses
Current Assets
Sales Returns and Allowances

25. Amount a merchandiser paid for the merchandise it sold during an accounting period
Investments
Cost of goods sold
Comparability
Consistency

26. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Current Ratio
Understandability
Current Assets
Property - Plant - and Equipment

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

28. Net income / (average owner's equity/2)
General and Administrative Expenses
Debit to Equity
Return on Equity
Contributed Capital

29. The difference between net sales and the cost of goods sold
Full Disclosure
Gross Margin
Current Assets
Retained Earnings

30. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
General and Administrative Expenses
Investments
Normal Operating Cycle
Consistency

31. Total cash sales and total credit sales during an accounting period
Property - Plant - and Equipment
Gross Sales
Asset Turnover
Understandability

32. The expense for federal - state - and local taxes on corporate income
Long-term Liabilities
Income Taxes
Selling Expenses
Other Revenues and Expenses

33. Tangible long-term assets used in a business day to day operations
Debit to Equity
Other Revenues and Expenses
Property - Plant - and Equipment
Profit Margin

34. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Materiality
Asset Turnover
Conservation
Income from Operations

35. Net income / net sales
Profit Margin
Operating Expenses
Selling Expenses
Income from Operations