Test your basic knowledge |

Financial Reporting And Analysis

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. Once a company adopted an accounting procedure - it must use it from one period to the next






2. Cost of storing goods and preparing them for sale






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






4. Gross proceeds from sales less sales returns and allowance and any discounts allowed






5. The difference between net sales and the cost of goods sold






6. Accounts reflect the amount of assets invested by stockholders






7. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year






8. Not related to a company's operating activities






9. Difference between gross margin and operating expense






10. Benefit gained from providing information should be greater than the cost of providing it






11. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory






12. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses






13. Total cash sales and total credit sales during an accounting period






14. Net income / (average owner's equity/2)






15. The average time it needs to go from spending cash to receiving cash






16. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income






17. Total liabilities / owner's equity






18. Amount a merchandiser paid for the merchandise it sold during an accounting period






19. Final figure of an income statement






20. Debts that fall due more than 1 year in the future or beyond the normal operating cycle






21. The expense for federal - state - and local taxes on corporate income






22. Net sales / (average total assets/2)






23. Tangible long-term assets used in a business day to day operations






24. Net income / (average total assets/2)






25. Net income / net sales






26. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods






27. Requires all financial statements presents all information relevant to users understanding of statements






28. FASB established standards to facilitate interpretation of accounting information






29. The relative importance of an item or event






30. Expenses incurred in running a business other than the cost of goods sold






31. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations






32. Current assets / current liabilities






33. Current assets - current liabilities = working capital






34. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable






35. Obligations that must be satisfied within 1 year or within normal operating cycle






Can you answer 50 questions in 15 minutes?



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