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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. 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
Cost of goods sold
Investments
Normal Operating Cycle
Comparability

2. Current assets / current liabilities
Current Ratio
Investments
Current Liabilities
General and Administrative Expenses

3. Total liabilities / owner's equity
Consistency
Qualitative Characteristics
Debit to Equity
Conservation

4. Amount a merchandiser paid for the merchandise it sold during an accounting period
Consistency
Property - Plant - and Equipment
Selling Expenses
Cost of goods sold

5. Final figure of an income statement
Operating Expenses
Net Income
Asset Turnover
Sales Returns and Allowances

6. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
General and Administrative Expenses
Long-term Liabilities
Return on Assets
Net Sales

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
Selling Expenses
Return on Assets
Sales Returns and Allowances
Current Assets

8. Requires all financial statements presents all information relevant to users understanding of statements
Understandability
Full Disclosure
Profit Margin
Qualitative Characteristics

9. Obligations that must be satisfied within 1 year or within normal operating cycle
Materiality
Income from Operations
Consistency
Current Liabilities

10. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Consistency
Selling Expenses
Understandability
Qualitative Characteristics

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

12. Net sales / (average total assets/2)
Asset Turnover
Normal Operating Cycle
Operating Expenses
Conservation

13. Expenses incurred in running a business other than the cost of goods sold
Gross Sales
Full Disclosure
Operating Expenses
Cost of goods sold

14. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Gross Margin
Net Sales
Gross Sales
General and Administrative Expenses

15. Net income / net sales
Comparability
Long-term Liabilities
Contributed Capital
Profit Margin

16. Not related to a company's operating activities
Full Disclosure
Other Revenues and Expenses
Long-term Liabilities
Net Sales

17. The expense for federal - state - and local taxes on corporate income
General and Administrative Expenses
Current Ratio
Cost Benefit
Income Taxes

18. Net income / (average owner's equity/2)
Return on Equity
Contributed Capital
Current Liabilities
Investments

19. The difference between net sales and the cost of goods sold
Gross Margin
Conservation
Operating Expenses
Current Ratio

20. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Profit Margin
Other Revenues and Expenses
Property - Plant - and Equipment

21. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Comparability
Long-term Liabilities
Debit to Equity
Operating Expenses

22. FASB established standards to facilitate interpretation of accounting information
Normal Operating Cycle
Consistency
Qualitative Characteristics
Understandability

23. The relative importance of an item or event
Understandability
Operating Expenses
Contributed Capital
Materiality

24. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Selling Expenses
Return on Assets
Conservation
Net Income

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

26. Accounts reflect the amount of assets invested by stockholders
General and Administrative Expenses
Gross Sales
Contributed Capital
Net Income

27. Difference between gross margin and operating expense
Income from Operations
Understandability
Return on Assets
Selling Expenses

28. The average time it needs to go from spending cash to receiving cash
Current Ratio
Other Revenues and Expenses
Understandability
Normal Operating Cycle

29. Total cash sales and total credit sales during an accounting period
Gross Sales
Selling Expenses
Income from Operations
Conservation

30. Cost of storing goods and preparing them for sale
Materiality
Selling Expenses
Full Disclosure
Income Taxes

31. Current assets - current liabilities = working capital
Working Capital
Contributed Capital
Conservation
Qualitative Characteristics

32. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Net Sales
Current Assets
Cost of goods sold
Comparability

33. Tangible long-term assets used in a business day to day operations
Return on Assets
Operating Expenses
Property - Plant - and Equipment
Selling Expenses

34. Net income / (average total assets/2)
Return on Assets
Full Disclosure
Conservation
Understandability

35. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Sales Returns and Allowances
Retained Earnings
Current Assets
Cost Benefit