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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. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Gross Margin
Comparability
Investments
Operating Expenses

2. The difference between net sales and the cost of goods sold
Consistency
Gross Margin
Debit to Equity
Property - Plant - and Equipment

3. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Current Liabilities
Selling Expenses
Comparability
General and Administrative Expenses

4. Not related to a company's operating activities
Contributed Capital
Gross Sales
Other Revenues and Expenses
Net Income

5. The relative importance of an item or event
Operating Expenses
Current Liabilities
Materiality
Consistency

6. Net sales / (average total assets/2)
Income Taxes
Asset Turnover
Return on Assets
Selling Expenses

7. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Contributed Capital
Comparability
Return on Assets
Sales Returns and Allowances

8. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Net Income
Selling Expenses
Understandability
Full Disclosure

9. Requires all financial statements presents all information relevant to users understanding of statements
Working Capital
Full Disclosure
Selling Expenses
Net Income

10. Cost of storing goods and preparing them for sale
Normal Operating Cycle
Asset Turnover
Selling Expenses
Contributed Capital

11. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Cost Benefit
Qualitative Characteristics
Retained Earnings
Investments

12. Total cash sales and total credit sales during an accounting period
Contributed Capital
Sales Returns and Allowances
Gross Sales
Return on Equity

13. Amount a merchandiser paid for the merchandise it sold during an accounting period
Qualitative Characteristics
Cost of goods sold
Current Ratio
Current Assets

14. Total liabilities / owner's equity
Net Sales
Debit to Equity
Profit Margin
Cost of goods sold

15. Current assets / current liabilities
Property - Plant - and Equipment
Gross Sales
Current Ratio
Return on Equity

16. Net income / net sales
Income Taxes
Profit Margin
Long-term Liabilities
Income from Operations

17. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Current Assets
Understandability
Comparability

18. Tangible long-term assets used in a business day to day operations
Asset Turnover
Conservation
Property - Plant - and Equipment
Gross Sales

19. The expense for federal - state - and local taxes on corporate income
Income Taxes
Selling Expenses
Cost Benefit
Return on Equity

20. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Long-term Liabilities
Cost of goods sold
Conservation

21. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Return on Equity
Cost Benefit
Comparability

22. Difference between gross margin and operating expense
Current Assets
Income from Operations
Profit Margin
Retained Earnings

23. Expenses incurred in running a business other than the cost of goods sold
Asset Turnover
Gross Sales
Operating Expenses
Return on Assets

24. 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
Sales Returns and Allowances
Investments
Property - Plant - and Equipment

25. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Working Capital
Investments
Full Disclosure

26. Final figure of an income statement
Property - Plant - and Equipment
Cost Benefit
General and Administrative Expenses
Net Income

27. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Conservation
Net Sales
Qualitative Characteristics
Cost of goods sold

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

29. Net income / (average owner's equity/2)
Income from Operations
Return on Equity
Retained Earnings
Gross Margin

30. Current assets - current liabilities = working capital
Other Revenues and Expenses
Retained Earnings
Debit to Equity
Working Capital

31. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Qualitative Characteristics
Cost of goods sold
Income Taxes

32. Accounts reflect the amount of assets invested by stockholders
Understandability
Contributed Capital
Current Ratio
Income from Operations

33. Obligations that must be satisfied within 1 year or within normal operating cycle
Normal Operating Cycle
Understandability
Return on Equity
Current Liabilities

34. The average time it needs to go from spending cash to receiving cash
Current Ratio
Normal Operating Cycle
Income Taxes
Cost Benefit

35. Net income / (average total assets/2)
Return on Assets
Net Income
Conservation
Income Taxes