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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. Tangible long-term assets used in a business day to day operations
Retained Earnings
Property - Plant - and Equipment
Cost Benefit
Net Income

2. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Comparability
Gross Margin
Cost Benefit
General and Administrative Expenses

3. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Retained Earnings
Conservation
Comparability
Operating Expenses

4. Net income / (average owner's equity/2)
Gross Sales
Return on Equity
Return on Assets
Cost Benefit

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

6. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Net Sales
Operating Expenses
Current Assets
Income from Operations

7. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Asset Turnover
Current Assets
Debit to Equity
General and Administrative Expenses

8. Net income / (average total assets/2)
Consistency
Return on Assets
Understandability
Property - Plant - and Equipment

9. 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
Property - Plant - and Equipment
Profit Margin
Normal Operating Cycle

10. Final figure of an income statement
Materiality
Net Income
Debit to Equity
Return on Equity

11. Not related to a company's operating activities
Long-term Liabilities
Other Revenues and Expenses
Income Taxes
General and Administrative Expenses

12. Difference between gross margin and operating expense
Net Income
Materiality
Operating Expenses
Income from Operations

13. Requires all financial statements presents all information relevant to users understanding of statements
Debit to Equity
Full Disclosure
Selling Expenses
Property - Plant - and Equipment

14. Current assets / current liabilities
Working Capital
Income from Operations
Return on Equity
Current Ratio

15. Current assets - current liabilities = working capital
Working Capital
Profit Margin
Current Liabilities
Current Ratio

16. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Current Assets
General and Administrative Expenses
Conservation
Other Revenues and Expenses

17. Net sales / (average total assets/2)
Net Sales
Property - Plant - and Equipment
Retained Earnings
Asset Turnover

18. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Contributed Capital
Conservation
Current Liabilities

19. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Sales Returns and Allowances
Asset Turnover
Full Disclosure

20. Obligations that must be satisfied within 1 year or within normal operating cycle
Income from Operations
Current Liabilities
Materiality
Qualitative Characteristics

21. Once a company adopted an accounting procedure - it must use it from one period to the next
Understandability
Other Revenues and Expenses
Consistency
Debit to Equity

22. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Selling Expenses
Full Disclosure
Net Sales
Cost of goods sold

23. Accounts reflect the amount of assets invested by stockholders
Other Revenues and Expenses
Current Assets
Materiality
Contributed Capital

24. The relative importance of an item or event
Materiality
Property - Plant - and Equipment
Cost Benefit
Asset Turnover

25. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Investments
Profit Margin
Contributed Capital

26. The expense for federal - state - and local taxes on corporate income
Income from Operations
Debit to Equity
Understandability
Income Taxes

27. Benefit gained from providing information should be greater than the cost of providing it
Operating Expenses
Return on Assets
Cost Benefit
Retained Earnings

28. The average time it needs to go from spending cash to receiving cash
Consistency
Conservation
Normal Operating Cycle
Working Capital

29. Total cash sales and total credit sales during an accounting period
Net Sales
Contributed Capital
Gross Sales
Retained Earnings

30. Net income / net sales
Profit Margin
Current Liabilities
Income Taxes
Gross Margin

31. Total liabilities / owner's equity
Long-term Liabilities
Consistency
Debit to Equity
Cost of goods sold

32. The difference between net sales and the cost of goods sold
Gross Margin
Long-term Liabilities
Current Ratio
Profit Margin

33. FASB established standards to facilitate interpretation of accounting information
Full Disclosure
Contributed Capital
Return on Equity
Qualitative Characteristics

34. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Conservation
Current Liabilities
Gross Sales
Understandability

35. 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
Conservation
Debit to Equity
Current Liabilities