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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)
Return on Equity
Income Taxes
Gross Sales
Conservation

2. Cost of storing goods and preparing them for sale
General and Administrative Expenses
Selling Expenses
Conservation
Current Assets

3. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Income Taxes
Net Income
General and Administrative Expenses
Other Revenues and Expenses

4. Difference between gross margin and operating expense
Understandability
Comparability
Consistency
Income from Operations

5. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Asset Turnover
Net Sales
Qualitative Characteristics

6. Not related to a company's operating activities
Return on Assets
Other Revenues and Expenses
Long-term Liabilities
Net Income

7. Current assets - current liabilities = working capital
Property - Plant - and Equipment
Current Liabilities
Working Capital
Investments

8. The average time it needs to go from spending cash to receiving cash
Materiality
Return on Assets
Normal Operating Cycle
Consistency

9. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Asset Turnover
Sales Returns and Allowances
Conservation
Retained Earnings

10. Once a company adopted an accounting procedure - it must use it from one period to the next
Comparability
Full Disclosure
Consistency
Operating Expenses

11. The difference between net sales and the cost of goods sold
Conservation
Gross Margin
Normal Operating Cycle
Cost Benefit

12. Total liabilities / owner's equity
Debit to Equity
General and Administrative Expenses
Cost of goods sold
Property - Plant - and Equipment

13. Total cash sales and total credit sales during an accounting period
Other Revenues and Expenses
Contributed Capital
Gross Sales
Qualitative Characteristics

14. The expense for federal - state - and local taxes on corporate income
Qualitative Characteristics
Current Assets
Long-term Liabilities
Income Taxes

15. Tangible long-term assets used in a business day to day operations
Asset Turnover
Comparability
Property - Plant - and Equipment
Return on Assets

16. Net sales / (average total assets/2)
Asset Turnover
Comparability
Return on Equity
General and Administrative Expenses

17. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Gross Sales
Long-term Liabilities
Income from Operations
Retained Earnings

18. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Long-term Liabilities
Return on Equity
Current Liabilities

19. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Net Sales
Selling Expenses
Current Ratio
Comparability

20. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Cost of goods sold
Full Disclosure
Gross Margin

21. Current assets / current liabilities
Cost of goods sold
Current Ratio
Current Assets
Cost Benefit

22. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Qualitative Characteristics
Retained Earnings
Investments
Conservation

23. Accounts reflect the amount of assets invested by stockholders
Materiality
Contributed Capital
Net Sales
Current Assets

24. Net income / net sales
Normal Operating Cycle
Profit Margin
Other Revenues and Expenses
Cost of goods sold

25. Net income / (average total assets/2)
Gross Sales
Full Disclosure
Gross Margin
Return on Assets

26. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Cost Benefit
Net Sales
Normal Operating Cycle

27. Expenses incurred in running a business other than the cost of goods sold
Qualitative Characteristics
Cost Benefit
Operating Expenses
Long-term Liabilities

28. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Income from Operations
Investments
Return on Equity

29. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Return on Assets
Conservation
Normal Operating Cycle

30. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Materiality
Current Assets
Sales Returns and Allowances
Conservation

31. 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
Current Ratio
Return on Equity
General and Administrative Expenses

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
Income Taxes
Current Ratio
Sales Returns and Allowances
Income from Operations

33. Final figure of an income statement
Net Income
Understandability
Qualitative Characteristics
Gross Margin

34. Amount a merchandiser paid for the merchandise it sold during an accounting period
Long-term Liabilities
Cost of goods sold
Gross Margin
Full Disclosure

35. The relative importance of an item or event
Gross Margin
Gross Sales
Materiality
Net Sales