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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. Benefit gained from providing information should be greater than the cost of providing it
Normal Operating Cycle
Consistency
Cost Benefit
Income Taxes

2. Final figure of an income statement
Other Revenues and Expenses
Gross Sales
Net Income
Consistency

3. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Property - Plant - and Equipment
Sales Returns and Allowances
Retained Earnings
Materiality

4. Once a company adopted an accounting procedure - it must use it from one period to the next
Consistency
Investments
Income from Operations
Debit to Equity

5. Accounts reflect the amount of assets invested by stockholders
Qualitative Characteristics
Sales Returns and Allowances
Income Taxes
Contributed Capital

6. Requires all financial statements presents all information relevant to users understanding of statements
Gross Margin
General and Administrative Expenses
Other Revenues and Expenses
Full Disclosure

7. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Current Assets
Conservation
Gross Margin
Property - Plant - and Equipment

8. Obligations that must be satisfied within 1 year or within normal operating cycle
Income Taxes
Current Liabilities
Property - Plant - and Equipment
Asset Turnover

9. The average time it needs to go from spending cash to receiving cash
Working Capital
Current Assets
Long-term Liabilities
Normal Operating Cycle

10. Net sales / (average total assets/2)
Asset Turnover
Gross Margin
Conservation
Cost Benefit

11. Cost of storing goods and preparing them for sale
Property - Plant - and Equipment
Gross Margin
Qualitative Characteristics
Selling Expenses

12. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Income from Operations
Cost Benefit
Gross Margin

13. Current assets / current liabilities
Selling Expenses
Current Ratio
Conservation
General and Administrative Expenses

14. Net income / (average total assets/2)
Current Ratio
Return on Equity
Return on Assets
Income Taxes

15. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Return on Equity
Understandability
Sales Returns and Allowances
Retained Earnings

16. Amount a merchandiser paid for the merchandise it sold during an accounting period
Normal Operating Cycle
Current Liabilities
Cost of goods sold
Cost Benefit

17. The difference between net sales and the cost of goods sold
Gross Margin
Income from Operations
Net Income
Contributed Capital

18. Total cash sales and total credit sales during an accounting period
Profit Margin
Asset Turnover
Gross Sales
Other Revenues and Expenses

19. 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
Asset Turnover
Operating Expenses
Contributed Capital

20. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Sales Returns and Allowances
Return on Assets
Conservation
General and Administrative Expenses

21. The expense for federal - state - and local taxes on corporate income
Property - Plant - and Equipment
Working Capital
Debit to Equity
Income Taxes

22. Net income / net sales
Profit Margin
Operating Expenses
Conservation
Other Revenues and Expenses

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

24. Total liabilities / owner's equity
Retained Earnings
Debit to Equity
Current Liabilities
Gross Margin

25. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Comparability
Retained Earnings
Property - Plant - and Equipment

26. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Other Revenues and Expenses
Income Taxes
Understandability
Conservation

27. Net income / (average owner's equity/2)
Gross Sales
Consistency
Return on Equity
Cost Benefit

28. Not related to a company's operating activities
Gross Margin
Sales Returns and Allowances
Other Revenues and Expenses
Gross Sales

29. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Property - Plant - and Equipment
Selling Expenses
Return on Equity

30. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Investments
Working Capital
Comparability
Income from Operations

31. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Cost Benefit
Cost of goods sold
Income from Operations

32. Difference between gross margin and operating expense
Other Revenues and Expenses
Cost of goods sold
Return on Equity
Income from Operations

33. The relative importance of an item or event
General and Administrative Expenses
Retained Earnings
Materiality
Qualitative Characteristics

34. Current assets - current liabilities = working capital
Full Disclosure
Property - Plant - and Equipment
Working Capital
Materiality

35. FASB established standards to facilitate interpretation of accounting information
Cost of goods sold
Full Disclosure
Qualitative Characteristics
Property - Plant - and Equipment