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Test your basic knowledge |
Financial Reporting And Analysis
Start Test
Study First
Subject
:
business-skills
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. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Consistency
Comparability
Property - Plant - and Equipment
Current Assets
2. Total liabilities / owner's equity
Sales Returns and Allowances
Current Ratio
Debit to Equity
Return on Assets
3. Not related to a company's operating activities
Selling Expenses
Other Revenues and Expenses
Conservation
Current Assets
4. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Normal Operating Cycle
Net Sales
Conservation
Understandability
5. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Current Liabilities
Profit Margin
Comparability
Return on Assets
6. Final figure of an income statement
Retained Earnings
Asset Turnover
Debit to Equity
Net Income
7. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Cost of goods sold
Current Liabilities
Long-term Liabilities
Understandability
8. Total cash sales and total credit sales during an accounting period
Retained Earnings
Gross Sales
Normal Operating Cycle
Sales Returns and Allowances
9. Net income / (average owner's equity/2)
Cost Benefit
Consistency
Return on Equity
Full Disclosure
10. Difference between gross margin and operating expense
Long-term Liabilities
Debit to Equity
Income from Operations
Gross Margin
11. Requires all financial statements presents all information relevant to users understanding of statements
Consistency
Investments
Full Disclosure
Current Liabilities
12. Cost of storing goods and preparing them for sale
Gross Margin
Selling Expenses
Full Disclosure
Gross Sales
13. Amount a merchandiser paid for the merchandise it sold during an accounting period
Conservation
Contributed Capital
Qualitative Characteristics
Cost of goods sold
14. The difference between net sales and the cost of goods sold
Gross Margin
Return on Assets
Long-term Liabilities
General and Administrative Expenses
15. Tangible long-term assets used in a business day to day operations
Property - Plant - and Equipment
Understandability
Gross Sales
Asset Turnover
16. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Property - Plant - and Equipment
Retained Earnings
Sales Returns and Allowances
Working Capital
17. Net sales / (average total assets/2)
Working Capital
Investments
Asset Turnover
Current Liabilities
18. Current assets - current liabilities = working capital
Sales Returns and Allowances
Working Capital
Return on Assets
Qualitative Characteristics
19. Net income / net sales
Profit Margin
Selling Expenses
Consistency
Qualitative Characteristics
20. The relative importance of an item or event
Materiality
Current Ratio
Retained Earnings
Current Liabilities
21. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Long-term Liabilities
Return on Equity
Profit Margin
22. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Other Revenues and Expenses
Selling Expenses
Current Liabilities
Conservation
23. Obligations that must be satisfied within 1 year or within normal operating cycle
Working Capital
Cost Benefit
Current Liabilities
Sales Returns and Allowances
24. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Debit to Equity
Full Disclosure
Gross Margin
General and Administrative Expenses
25. The expense for federal - state - and local taxes on corporate income
Income Taxes
Gross Margin
Net Income
Gross Sales
26. Net income / (average total assets/2)
Return on Assets
Other Revenues and Expenses
Current Liabilities
Working Capital
27. Expenses incurred in running a business other than the cost of goods sold
Return on Assets
Understandability
Operating Expenses
Current Ratio
28. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Income from Operations
Net Income
Long-term Liabilities
Asset Turnover
29. 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
Return on Assets
Retained Earnings
Asset Turnover
Investments
30. The average time it needs to go from spending cash to receiving cash
Profit Margin
Normal Operating Cycle
Long-term Liabilities
Retained Earnings
31. Benefit gained from providing information should be greater than the cost of providing it
Conservation
Other Revenues and Expenses
Contributed Capital
Cost Benefit
32. 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
Cost of goods sold
Qualitative Characteristics
Current Liabilities
33. Accounts reflect the amount of assets invested by stockholders
Profit Margin
Contributed Capital
Gross Sales
Return on Equity
34. Once a company adopted an accounting procedure - it must use it from one period to the next
Net Sales
Conservation
Debit to Equity
Consistency
35. Current assets / current liabilities
Long-term Liabilities
Current Ratio
Qualitative Characteristics
Operating Expenses