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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. Not related to a company's operating activities
Current Assets
Materiality
Other Revenues and Expenses
Net Sales

2. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Current Assets
Other Revenues and Expenses
Conservation
Asset Turnover

3. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Sales Returns and Allowances
Contributed Capital
Profit Margin

4. Accounts reflect the amount of assets invested by stockholders
Normal Operating Cycle
Contributed Capital
Consistency
Cost Benefit

5. Current assets - current liabilities = working capital
Current Ratio
Income from Operations
Gross Margin
Working Capital

6. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Qualitative Characteristics
Comparability
Materiality
Conservation

7. 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
Operating Expenses
Long-term Liabilities
Current Liabilities

8. Requires all financial statements presents all information relevant to users understanding of statements
Normal Operating Cycle
Qualitative Characteristics
Comparability
Full Disclosure

9. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Long-term Liabilities
Operating Expenses
General and Administrative Expenses
Gross Sales

10. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Selling Expenses
Long-term Liabilities
Current Ratio

11. The expense for federal - state - and local taxes on corporate income
Income Taxes
Consistency
Comparability
Asset Turnover

12. Net income / (average total assets/2)
Operating Expenses
Gross Sales
Return on Assets
Debit to Equity

13. Total liabilities / owner's equity
Debit to Equity
Asset Turnover
Current Liabilities
Cost of goods sold

14. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Working Capital
Retained Earnings
Conservation
Income Taxes

15. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Income Taxes
Net Sales
Current Ratio
Profit Margin

16. Final figure of an income statement
Comparability
Net Income
Return on Equity
Long-term Liabilities

17. Cost of storing goods and preparing them for sale
Retained Earnings
Selling Expenses
Profit Margin
Net Income

18. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Gross Sales
Long-term Liabilities
Net Sales
General and Administrative Expenses

19. Once a company adopted an accounting procedure - it must use it from one period to the next
Gross Margin
Cost of goods sold
Working Capital
Consistency

20. Current assets / current liabilities
Current Ratio
Investments
Net Income
Long-term Liabilities

21. The average time it needs to go from spending cash to receiving cash
Comparability
Cost of goods sold
Normal Operating Cycle
General and Administrative Expenses

22. Tangible long-term assets used in a business day to day operations
Cost of goods sold
Property - Plant - and Equipment
Normal Operating Cycle
Asset Turnover

23. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Sales Returns and Allowances
Income from Operations
Selling Expenses
Qualitative Characteristics

24. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Property - Plant - and Equipment
Full Disclosure
Net Sales

25. The difference between net sales and the cost of goods sold
Return on Assets
General and Administrative Expenses
Consistency
Gross Margin

26. The relative importance of an item or event
Income Taxes
Materiality
Income from Operations
Qualitative Characteristics

27. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Cost Benefit
Understandability
Return on Equity

28. Total cash sales and total credit sales during an accounting period
Understandability
Gross Sales
Full Disclosure
General and Administrative Expenses

29. Net income / (average owner's equity/2)
Cost Benefit
Other Revenues and Expenses
Return on Equity
Understandability

30. Net sales / (average total assets/2)
Selling Expenses
Gross Sales
Asset Turnover
Income Taxes

31. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Property - Plant - and Equipment
Qualitative Characteristics
Income Taxes
Understandability

32. Net income / net sales
Investments
Long-term Liabilities
Profit Margin
Property - Plant - and Equipment

33. Benefit gained from providing information should be greater than the cost of providing it
Long-term Liabilities
Net Income
Income from Operations
Cost Benefit

34. Difference between gross margin and operating expense
Income from Operations
Gross Sales
Return on Assets
Income Taxes

35. Obligations that must be satisfied within 1 year or within normal operating cycle
Income from Operations
Cost Benefit
Current Liabilities
Property - Plant - and Equipment