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

2. Total cash sales and total credit sales during an accounting period
Materiality
Return on Equity
Gross Sales
Retained Earnings

3. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Cost Benefit
Gross Sales
Other Revenues and Expenses

4. The average time it needs to go from spending cash to receiving cash
Investments
Debit to Equity
Full Disclosure
Normal Operating Cycle

5. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Materiality
Return on Assets
Conservation
Income Taxes

6. FASB established standards to facilitate interpretation of accounting information
Net Sales
Comparability
General and Administrative Expenses
Qualitative Characteristics

7. Total liabilities / owner's equity
Working Capital
Gross Margin
Debit to Equity
Current Assets

8. Current assets / current liabilities
Long-term Liabilities
Asset Turnover
Gross Margin
Current Ratio

9. The relative importance of an item or event
Materiality
Net Sales
Profit Margin
Other Revenues and Expenses

10. Amount a merchandiser paid for the merchandise it sold during an accounting period
Profit Margin
Materiality
Cost of goods sold
Net Income

11. Tangible long-term assets used in a business day to day operations
Debit to Equity
Property - Plant - and Equipment
Materiality
Selling Expenses

12. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Cost of goods sold
Consistency
Comparability
Net Sales

13. Once a company adopted an accounting procedure - it must use it from one period to the next
Current Assets
Consistency
Asset Turnover
Operating Expenses

14. Difference between gross margin and operating expense
Selling Expenses
Current Liabilities
Conservation
Income from Operations

15. Net income / net sales
Profit Margin
Comparability
Income Taxes
General and Administrative Expenses

16. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Property - Plant - and Equipment
Operating Expenses
Contributed Capital

17. Cost of storing goods and preparing them for sale
Selling Expenses
Contributed Capital
Current Assets
Sales Returns and Allowances

18. Current assets - current liabilities = working capital
Current Liabilities
Income from Operations
Income Taxes
Working Capital

19. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Long-term Liabilities
Operating Expenses
General and Administrative Expenses
Net Sales

20. Net income / (average total assets/2)
Return on Assets
Investments
Net Income
Current Assets

21. Expenses incurred in running a business other than the cost of goods sold
Comparability
Operating Expenses
Normal Operating Cycle
Return on Assets

22. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Understandability
Current Assets
Return on Assets
Net Income

23. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Comparability
Conservation
Other Revenues and Expenses
Normal Operating Cycle

24. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Cost of goods sold
Sales Returns and Allowances
Comparability
Gross Sales

25. 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
Income Taxes
Investments
Retained Earnings
Net Sales

26. Not related to a company's operating activities
Current Ratio
Other Revenues and Expenses
Net Sales
Operating Expenses

27. Final figure of an income statement
Qualitative Characteristics
Net Income
Normal Operating Cycle
Investments

28. The expense for federal - state - and local taxes on corporate income
Conservation
Net Income
Income Taxes
Operating Expenses

29. Obligations that must be satisfied within 1 year or within normal operating cycle
Working Capital
Qualitative Characteristics
Current Liabilities
Other Revenues and Expenses

30. The difference between net sales and the cost of goods sold
Comparability
Gross Margin
General and Administrative Expenses
Retained Earnings

31. Accounts reflect the amount of assets invested by stockholders
Asset Turnover
Understandability
Return on Equity
Contributed Capital

32. Net sales / (average total assets/2)
Asset Turnover
Comparability
Working Capital
Full Disclosure

33. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
General and Administrative Expenses
Current Assets
Income from Operations

34. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Return on Equity
Full Disclosure
Income from Operations
Retained Earnings

35. Net income / (average owner's equity/2)
Current Liabilities
Cost Benefit
Return on Equity
Current Ratio