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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 / net sales
Profit Margin
Normal Operating Cycle
Full Disclosure
Qualitative Characteristics

2. Benefit gained from providing information should be greater than the cost of providing it
Consistency
Cost Benefit
Other Revenues and Expenses
Contributed Capital

3. Tangible long-term assets used in a business day to day operations
Understandability
Property - Plant - and Equipment
Current Ratio
Return on Assets

4. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Consistency
Net Income
Profit Margin

5. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Gross Margin
Sales Returns and Allowances
Retained Earnings

6. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Conservation
Current Liabilities
General and Administrative Expenses
Asset Turnover

7. Difference between gross margin and operating expense
Net Sales
Cost of goods sold
Income from Operations
Property - Plant - and Equipment

8. Total cash sales and total credit sales during an accounting period
Conservation
Gross Sales
Net Sales
Sales Returns and Allowances

9. Cost of storing goods and preparing them for sale
Income Taxes
Selling Expenses
Current Assets
Cost Benefit

10. Accounts reflect the amount of assets invested by stockholders
Other Revenues and Expenses
Gross Sales
Contributed Capital
Asset Turnover

11. Current assets / current liabilities
Selling Expenses
Conservation
Cost of goods sold
Current Ratio

12. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Working Capital
Comparability
Full Disclosure
Retained Earnings

13. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Retained Earnings
Long-term Liabilities
Investments
Conservation

14. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Profit Margin
Understandability
Current Liabilities

15. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Income from Operations
Investments
Income Taxes

16. The relative importance of an item or event
Net Income
Gross Sales
Materiality
Qualitative Characteristics

17. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Materiality
Understandability
Cost of goods sold
Conservation

18. The expense for federal - state - and local taxes on corporate income
Gross Margin
Normal Operating Cycle
Profit Margin
Income Taxes

19. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Debit to Equity
Comparability
Property - Plant - and Equipment
Other Revenues and Expenses

20. Current assets - current liabilities = working capital
Net Income
Comparability
Selling Expenses
Working Capital

21. The average time it needs to go from spending cash to receiving cash
Debit to Equity
Normal Operating Cycle
Working Capital
Selling Expenses

22. The difference between net sales and the cost of goods sold
Other Revenues and Expenses
Operating Expenses
Cost of goods sold
Gross Margin

23. Not related to a company's operating activities
Return on Assets
Net Income
Other Revenues and Expenses
Income Taxes

24. Net income / (average total assets/2)
Debit to Equity
General and Administrative Expenses
Net Sales
Return on Assets

25. 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
Return on Assets
Return on Equity

26. 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
Comparability
Long-term Liabilities
Asset Turnover

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
Materiality
Consistency
Comparability

28. Total liabilities / owner's equity
Comparability
Debit to Equity
Other Revenues and Expenses
Income Taxes

29. Final figure of an income statement
Qualitative Characteristics
Retained Earnings
Net Income
Current Assets

30. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Sales Returns and Allowances
Net Sales
Normal Operating Cycle
Net Income

31. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
General and Administrative Expenses
Conservation
Selling Expenses
Operating Expenses

32. Net income / (average owner's equity/2)
Normal Operating Cycle
Comparability
Return on Equity
Asset Turnover

33. Obligations that must be satisfied within 1 year or within normal operating cycle
Asset Turnover
Retained Earnings
Current Liabilities
Comparability

34. Net sales / (average total assets/2)
Asset Turnover
Operating Expenses
Current Assets
Sales Returns and Allowances

35. FASB established standards to facilitate interpretation of accounting information
Long-term Liabilities
Qualitative Characteristics
Sales Returns and Allowances
Normal Operating Cycle