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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 Liabilities
Contributed Capital
Comparability
Current Ratio

2. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Other Revenues and Expenses
Cost Benefit
Income from Operations
Retained Earnings

3. Once a company adopted an accounting procedure - it must use it from one period to the next
Net Income
Income Taxes
General and Administrative Expenses
Consistency

4. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Full Disclosure
Net Income
Income from Operations

5. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Sales Returns and Allowances
Asset Turnover
Current Assets
Gross Margin

6. Net income / net sales
Income from Operations
General and Administrative Expenses
Profit Margin
Comparability

7. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Comparability
Qualitative Characteristics
Net Sales
Return on Equity

8. Total liabilities / owner's equity
Retained Earnings
Investments
Consistency
Debit to Equity

9. FASB established standards to facilitate interpretation of accounting information
Return on Assets
Qualitative Characteristics
Return on Equity
Long-term Liabilities

10. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Other Revenues and Expenses
Conservation
Gross Sales
Consistency

11. Obligations that must be satisfied within 1 year or within normal operating cycle
Gross Margin
Current Liabilities
Net Sales
Current Ratio

12. Current assets - current liabilities = working capital
Other Revenues and Expenses
Retained Earnings
Working Capital
Gross Sales

13. The average time it needs to go from spending cash to receiving cash
Long-term Liabilities
Normal Operating Cycle
Net Income
Return on Assets

14. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Materiality
Income Taxes
Sales Returns and Allowances
Comparability

15. Final figure of an income statement
Cost of goods sold
Selling Expenses
Net Income
Return on Assets

16. Net income / (average owner's equity/2)
Retained Earnings
Return on Equity
Return on Assets
Qualitative Characteristics

17. Net income / (average total assets/2)
Income from Operations
Consistency
Return on Assets
Current Assets

18. 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
Comparability
Current Assets
Return on Assets
Investments

19. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Understandability
Current Ratio
Asset Turnover

20. Not related to a company's operating activities
Other Revenues and Expenses
Current Liabilities
Full Disclosure
Working Capital

21. Requires all financial statements presents all information relevant to users understanding of statements
Materiality
Full Disclosure
Investments
Qualitative Characteristics

22. Amount a merchandiser paid for the merchandise it sold during an accounting period
Selling Expenses
Current Assets
Other Revenues and Expenses
Cost of goods sold

23. The expense for federal - state - and local taxes on corporate income
Income Taxes
Long-term Liabilities
Asset Turnover
Comparability

24. The difference between net sales and the cost of goods sold
Understandability
Gross Sales
Gross Margin
Net Sales

25. Tangible long-term assets used in a business day to day operations
Current Assets
Long-term Liabilities
Property - Plant - and Equipment
Other Revenues and Expenses

26. Net sales / (average total assets/2)
Retained Earnings
General and Administrative Expenses
Conservation
Asset Turnover

27. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Selling Expenses
Cost of goods sold
Materiality

28. The relative importance of an item or event
Operating Expenses
Materiality
Other Revenues and Expenses
Return on Equity

29. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Current Liabilities
Current Ratio
Sales Returns and Allowances
Retained Earnings

30. Difference between gross margin and operating expense
Sales Returns and Allowances
Current Liabilities
Conservation
Income from Operations

31. Cost of storing goods and preparing them for sale
Consistency
Income Taxes
Operating Expenses
Selling Expenses

32. Total cash sales and total credit sales during an accounting period
Full Disclosure
Normal Operating Cycle
Working Capital
Gross Sales

33. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Net Sales
Profit Margin
Operating Expenses
General and Administrative Expenses

34. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Operating Expenses
Investments
Long-term Liabilities
Income from Operations

35. Accounts reflect the amount of assets invested by stockholders
Contributed Capital
Working Capital
Current Liabilities
Net Income