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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. Net income / (average owner's equity/2)
Working Capital
Return on Equity
Comparability
Retained Earnings

2. Total liabilities / owner's equity
Comparability
Debit to Equity
Asset Turnover
Operating Expenses

3. 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
Working Capital
Consistency
Current Liabilities
Investments

4. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Long-term Liabilities
Operating Expenses
Investments

5. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Full Disclosure
Current Ratio
Retained Earnings
Materiality

6. Current assets - current liabilities = working capital
Working Capital
Current Ratio
General and Administrative Expenses
Current Liabilities

7. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Income Taxes
Understandability
Long-term Liabilities
Sales Returns and Allowances

8. Current assets / current liabilities
Cost Benefit
Net Sales
Income from Operations
Current Ratio

9. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Investments
Gross Margin
Operating Expenses

10. Cost of storing goods and preparing them for sale
Contributed Capital
Gross Sales
Return on Equity
Selling Expenses

11. Net sales / (average total assets/2)
General and Administrative Expenses
Normal Operating Cycle
Asset Turnover
Conservation

12. Not related to a company's operating activities
Net Sales
Sales Returns and Allowances
Return on Assets
Other Revenues and Expenses

13. FASB established standards to facilitate interpretation of accounting information
General and Administrative Expenses
Qualitative Characteristics
Materiality
Selling Expenses

14. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Long-term Liabilities
General and Administrative Expenses
Sales Returns and Allowances
Working Capital

15. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Normal Operating Cycle
Long-term Liabilities
Conservation
Net Income

16. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Income Taxes
Investments
Net Income
Comparability

17. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Understandability
Normal Operating Cycle
Materiality

18. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Sales Returns and Allowances
Return on Assets
Retained Earnings

19. Final figure of an income statement
Net Income
Return on Assets
Current Ratio
Long-term Liabilities

20. Net income / net sales
Net Income
Comparability
Profit Margin
Normal Operating Cycle

21. Difference between gross margin and operating expense
Cost Benefit
Profit Margin
Income from Operations
Sales Returns and Allowances

22. The difference between net sales and the cost of goods sold
Gross Margin
Asset Turnover
Qualitative Characteristics
Income from Operations

23. Obligations that must be satisfied within 1 year or within normal operating cycle
Return on Assets
Current Liabilities
Operating Expenses
General and Administrative Expenses

24. Total cash sales and total credit sales during an accounting period
Gross Sales
Current Liabilities
Profit Margin
Gross Margin

25. Net income / (average total assets/2)
Normal Operating Cycle
Income from Operations
Current Ratio
Return on Assets

26. Tangible long-term assets used in a business day to day operations
Profit Margin
Property - Plant - and Equipment
Return on Assets
General and Administrative Expenses

27. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Income Taxes
Consistency
Qualitative Characteristics
Net Sales

28. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Ratio
Consistency
Current Assets
Gross Margin

29. Expenses incurred in running a business other than the cost of goods sold
Current Liabilities
Normal Operating Cycle
Cost of goods sold
Operating Expenses

30. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Materiality
General and Administrative Expenses
Understandability
Normal Operating Cycle

31. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
General and Administrative Expenses
Gross Sales
Cost Benefit
Profit Margin

32. The expense for federal - state - and local taxes on corporate income
Selling Expenses
Retained Earnings
Long-term Liabilities
Income Taxes

33. The average time it needs to go from spending cash to receiving cash
Property - Plant - and Equipment
Selling Expenses
Understandability
Normal Operating Cycle

34. The relative importance of an item or event
Materiality
General and Administrative Expenses
Net Income
Profit Margin

35. Accounts reflect the amount of assets invested by stockholders
Current Liabilities
Normal Operating Cycle
Contributed Capital
Qualitative Characteristics