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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. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Current Assets
Long-term Liabilities
Qualitative Characteristics

2. Benefit gained from providing information should be greater than the cost of providing it
Comparability
Conservation
Cost Benefit
Operating Expenses

3. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Current Liabilities
Investments
Asset Turnover
Retained Earnings

4. Difference between gross margin and operating expense
Net Income
Income from Operations
Selling Expenses
Working Capital

5. Net income / (average total assets/2)
Return on Assets
Long-term Liabilities
Current Liabilities
Income from Operations

6. Net income / (average owner's equity/2)
Normal Operating Cycle
Return on Assets
Investments
Return on Equity

7. Expenses incurred in running a business other than the cost of goods sold
Asset Turnover
Operating Expenses
Income from Operations
Full Disclosure

8. Final figure of an income statement
Net Income
Return on Assets
Consistency
Long-term Liabilities

9. FASB established standards to facilitate interpretation of accounting information
Property - Plant - and Equipment
Net Sales
Qualitative Characteristics
Retained Earnings

10. 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
Net Income
Current Liabilities
Property - Plant - and Equipment

11. Net sales / (average total assets/2)
Debit to Equity
Net Income
Asset Turnover
Operating Expenses

12. Not related to a company's operating activities
Working Capital
Consistency
Other Revenues and Expenses
Asset Turnover

13. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Gross Margin
General and Administrative Expenses
Income Taxes
Gross Sales

14. Once a company adopted an accounting procedure - it must use it from one period to the next
Gross Margin
Consistency
Other Revenues and Expenses
Net Sales

15. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Current Liabilities
Return on Equity
Comparability

16. Current assets - current liabilities = working capital
Consistency
Current Liabilities
Income Taxes
Working Capital

17. The relative importance of an item or event
Working Capital
Comparability
Materiality
Current Ratio

18. Accounts reflect the amount of assets invested by stockholders
Net Sales
Contributed Capital
Net Income
Gross Sales

19. The expense for federal - state - and local taxes on corporate income
Retained Earnings
Income from Operations
Income Taxes
Other Revenues and Expenses

20. Amount a merchandiser paid for the merchandise it sold during an accounting period
Current Liabilities
Retained Earnings
Debit to Equity
Cost of goods sold

21. Total liabilities / owner's equity
General and Administrative Expenses
Selling Expenses
Debit to Equity
Operating Expenses

22. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
General and Administrative Expenses
Operating Expenses
Comparability
Sales Returns and Allowances

23. Cost of storing goods and preparing them for sale
Gross Margin
Income Taxes
Selling Expenses
Comparability

24. Requires all financial statements presents all information relevant to users understanding of statements
Normal Operating Cycle
Full Disclosure
Income Taxes
Net Sales

25. Current assets / current liabilities
Comparability
Current Ratio
Normal Operating Cycle
Consistency

26. Total cash sales and total credit sales during an accounting period
Normal Operating Cycle
Other Revenues and Expenses
Gross Sales
Return on Assets

27. The difference between net sales and the cost of goods sold
Gross Margin
Gross Sales
Other Revenues and Expenses
Current Liabilities

28. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Property - Plant - and Equipment
Return on Equity
Long-term Liabilities
General and Administrative Expenses

29. Tangible long-term assets used in a business day to day operations
Cost of goods sold
Property - Plant - and Equipment
Asset Turnover
Conservation

30. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Understandability
Contributed Capital
Cost of goods sold
Comparability

31. Net income / net sales
Profit Margin
Net Sales
Normal Operating Cycle
Long-term Liabilities

32. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Working Capital
Materiality
Understandability
Return on Equity

33. The average time it needs to go from spending cash to receiving cash
Qualitative Characteristics
Working Capital
Normal Operating Cycle
Conservation

34. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Income Taxes
Conservation
Net Sales
Current Ratio

35. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Selling Expenses
Sales Returns and Allowances
Conservation
Other Revenues and Expenses