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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 sales / (average total assets/2)
Retained Earnings
Return on Equity
Comparability
Asset Turnover

2. Not related to a company's operating activities
Property - Plant - and Equipment
Qualitative Characteristics
Other Revenues and Expenses
Gross Sales

3. Total cash sales and total credit sales during an accounting period
Asset Turnover
Investments
Consistency
Gross Sales

4. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Contributed Capital
Comparability
Selling Expenses

5. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Debit to Equity
Cost of goods sold
Conservation
Current Liabilities

6. FASB established standards to facilitate interpretation of accounting information
Asset Turnover
Qualitative Characteristics
Income from Operations
Other Revenues and Expenses

7. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Return on Assets
Current Assets
Current Ratio
Long-term Liabilities

8. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Income Taxes
Retained Earnings
Gross Sales

9. Tangible long-term assets used in a business day to day operations
Retained Earnings
Property - Plant - and Equipment
Return on Assets
Normal Operating Cycle

10. Accounts reflect the amount of assets invested by stockholders
Understandability
Consistency
Contributed Capital
Gross Sales

11. The relative importance of an item or event
Asset Turnover
Current Assets
Cost of goods sold
Materiality

12. Amount a merchandiser paid for the merchandise it sold during an accounting period
General and Administrative Expenses
Current Ratio
Full Disclosure
Cost of goods sold

13. Final figure of an income statement
Net Income
Cost of goods sold
Income from Operations
Sales Returns and Allowances

14. Current assets / current liabilities
Gross Sales
Working Capital
Long-term Liabilities
Current Ratio

15. Net income / net sales
Working Capital
Income Taxes
Profit Margin
General and Administrative Expenses

16. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Income Taxes
Current Assets
Other Revenues and Expenses
Contributed Capital

17. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Materiality
Net Sales
Income from Operations
General and Administrative Expenses

18. Once a company adopted an accounting procedure - it must use it from one period to the next
Income Taxes
Normal Operating Cycle
Property - Plant - and Equipment
Consistency

19. Current assets - current liabilities = working capital
Selling Expenses
Working Capital
Current Ratio
Comparability

20. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Return on Equity
Understandability
Working Capital
Property - Plant - and Equipment

21. Total liabilities / owner's equity
Investments
Contributed Capital
Gross Sales
Debit to Equity

22. Net income / (average owner's equity/2)
Return on Equity
Net Sales
Net Income
Cost Benefit

23. Requires all financial statements presents all information relevant to users understanding of statements
Sales Returns and Allowances
Full Disclosure
Property - Plant - and Equipment
Retained Earnings

24. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Current Assets
Other Revenues and Expenses
Full Disclosure
Retained Earnings

25. The expense for federal - state - and local taxes on corporate income
Cost of goods sold
Debit to Equity
Income Taxes
Selling Expenses

26. The difference between net sales and the cost of goods sold
Income Taxes
Cost Benefit
Return on Assets
Gross Margin

27. Cost of storing goods and preparing them for sale
Normal Operating Cycle
Selling Expenses
Cost Benefit
Cost of goods sold

28. Expenses incurred in running a business other than the cost of goods sold
Asset Turnover
Current Assets
Operating Expenses
Sales Returns and Allowances

29. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Understandability
Income from Operations
Current Ratio

30. The average time it needs to go from spending cash to receiving cash
Cost Benefit
Return on Assets
General and Administrative Expenses
Normal Operating Cycle

31. Difference between gross margin and operating expense
Return on Assets
Cost of goods sold
Income from Operations
Current Ratio

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
Debit to Equity
Consistency
Sales Returns and Allowances
Gross Sales

33. Net income / (average total assets/2)
Investments
Return on Assets
General and Administrative Expenses
Cost of goods sold

34. 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
Retained Earnings
Income from Operations
Investments
Gross Margin

35. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Asset Turnover
Cost Benefit
Cost of goods sold
Comparability