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






2. Net income / net sales






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






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






5. Not related to a company's operating activities






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






7. Difference between gross margin and operating expense






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






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






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






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






12. Current assets - current liabilities = working capital






13. 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






14. Accounts reflect the amount of assets invested by stockholders






15. Current assets / current liabilities






16. The relative importance of an item or event






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






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






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






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






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






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






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






24. Cost of storing goods and preparing them for sale






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






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






27. FASB established standards to facilitate interpretation of accounting information






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






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






30. Final figure of an income statement






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






32. Total liabilities / owner's equity






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






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






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