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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. The difference between net sales and the cost of goods sold
Gross Margin
Current Ratio
Understandability
Comparability

2. Amount a merchandiser paid for the merchandise it sold during an accounting period
Consistency
Cost of goods sold
Profit Margin
Net Sales

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

4. Current assets / current liabilities
Understandability
Current Ratio
Asset Turnover
Profit Margin

5. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
Current Assets
Sales Returns and Allowances
Property - Plant - and Equipment

6. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Current Assets
Sales Returns and Allowances
Selling Expenses
Current Ratio

7. Net income / net sales
Long-term Liabilities
Income Taxes
Other Revenues and Expenses
Profit Margin

8. Accounts reflect the amount of assets invested by stockholders
Contributed Capital
Cost of goods sold
Gross Sales
Return on Equity

9. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Retained Earnings
Working Capital
Net Income
Return on Equity

10. Total liabilities / owner's equity
Operating Expenses
Selling Expenses
Debit to Equity
Return on Assets

11. Once a company adopted an accounting procedure - it must use it from one period to the next
Contributed Capital
Cost Benefit
Consistency
Return on Assets

12. Difference between gross margin and operating expense
Return on Equity
Gross Sales
Cost Benefit
Income from Operations

13. Cost of storing goods and preparing them for sale
Net Sales
Selling Expenses
Conservation
Property - Plant - and Equipment

14. The average time it needs to go from spending cash to receiving cash
General and Administrative Expenses
Normal Operating Cycle
Cost Benefit
Current Liabilities

15. Net income / (average owner's equity/2)
Gross Margin
Return on Equity
Asset Turnover
Understandability

16. Requires all financial statements presents all information relevant to users understanding of statements
Current Liabilities
Full Disclosure
Comparability
Profit Margin

17. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Investments
General and Administrative Expenses
Profit Margin
Property - Plant - and Equipment

18. The expense for federal - state - and local taxes on corporate income
Income Taxes
Property - Plant - and Equipment
Working Capital
Investments

19. Total cash sales and total credit sales during an accounting period
Gross Sales
Other Revenues and Expenses
Current Ratio
General and Administrative Expenses

20. 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
Operating Expenses
Investments
Asset Turnover
Profit Margin

21. Expenses incurred in running a business other than the cost of goods sold
Income Taxes
Operating Expenses
Net Income
Contributed Capital

22. Benefit gained from providing information should be greater than the cost of providing it
Cost of goods sold
Cost Benefit
Understandability
Gross Sales

23. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Income Taxes
Materiality
Net Sales
Profit Margin

24. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Operating Expenses
Debit to Equity
Income from Operations

25. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Assets
Current Liabilities
Normal Operating Cycle
Materiality

26. Final figure of an income statement
Return on Assets
Net Income
Profit Margin
Gross Sales

27. Tangible long-term assets used in a business day to day operations
Cost of goods sold
General and Administrative Expenses
Property - Plant - and Equipment
Sales Returns and Allowances

28. Net sales / (average total assets/2)
Retained Earnings
Asset Turnover
Cost of goods sold
Selling Expenses

29. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Debit to Equity
Income Taxes
Comparability
Current Assets

30. Obligations that must be satisfied within 1 year or within normal operating cycle
Long-term Liabilities
Current Liabilities
Materiality
Full Disclosure

31. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Gross Sales
Contributed Capital
Conservation
Income from Operations

32. The relative importance of an item or event
Materiality
Retained Earnings
Income from Operations
Return on Assets

33. Not related to a company's operating activities
Gross Margin
Return on Assets
Consistency
Other Revenues and Expenses

34. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Debit to Equity
Profit Margin
Long-term Liabilities

35. Current assets - current liabilities = working capital
Other Revenues and Expenses
Working Capital
Selling Expenses
Return on Assets