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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 / net sales
Consistency
Materiality
Qualitative Characteristics
Profit Margin

2. Expenses incurred in running a business other than the cost of goods sold
Income from Operations
Return on Equity
Current Ratio
Operating Expenses

3. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Materiality
Retained Earnings
Asset Turnover

4. The expense for federal - state - and local taxes on corporate income
Income Taxes
Operating Expenses
Normal Operating Cycle
Cost of goods sold

5. Cost of storing goods and preparing them for sale
Profit Margin
Selling Expenses
Return on Equity
Full Disclosure

6. Tangible long-term assets used in a business day to day operations
Understandability
Contributed Capital
Profit Margin
Property - Plant - and Equipment

7. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Retained Earnings
Income from Operations
Current Ratio
Understandability

8. FASB established standards to facilitate interpretation of accounting information
Consistency
Qualitative Characteristics
Return on Assets
Gross Margin

9. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Contributed Capital
Gross Sales
Understandability
Net Sales

10. 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
Working Capital
Cost Benefit
Investments
Property - Plant - and Equipment

11. Total liabilities / owner's equity
Net Income
Current Liabilities
Property - Plant - and Equipment
Debit to Equity

12. Final figure of an income statement
Net Income
Net Sales
Other Revenues and Expenses
Long-term Liabilities

13. Not related to a company's operating activities
Working Capital
Contributed Capital
Normal Operating Cycle
Other Revenues and Expenses

14. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Cost Benefit
Other Revenues and Expenses
Income from Operations

15. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Conservation
Long-term Liabilities
Net Income

16. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Conservation
Return on Equity
Full Disclosure
Long-term Liabilities

17. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Operating Expenses
Profit Margin
Current Assets
Current Ratio

18. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Cost of goods sold
Operating Expenses
Comparability
Net Income

19. Total cash sales and total credit sales during an accounting period
Cost Benefit
Gross Sales
Sales Returns and Allowances
Working Capital

20. Current assets - current liabilities = working capital
Materiality
Income from Operations
Selling Expenses
Working Capital

21. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Full Disclosure
Debit to Equity
General and Administrative Expenses
Qualitative Characteristics

22. Net income / (average owner's equity/2)
Gross Margin
Income Taxes
Long-term Liabilities
Return on Equity

23. Difference between gross margin and operating expense
Income from Operations
Cost Benefit
Long-term Liabilities
Current Liabilities

24. Requires all financial statements presents all information relevant to users understanding of statements
Comparability
Investments
Return on Assets
Full Disclosure

25. The difference between net sales and the cost of goods sold
Debit to Equity
Gross Margin
Materiality
Return on Assets

26. Once a company adopted an accounting procedure - it must use it from one period to the next
Cost of goods sold
Return on Assets
Consistency
Working Capital

27. Net income / (average total assets/2)
Asset Turnover
Understandability
Return on Assets
Working Capital

28. Net sales / (average total assets/2)
Asset Turnover
Consistency
Retained Earnings
Gross Sales

29. Current assets / current liabilities
Current Liabilities
Conservation
Profit Margin
Current Ratio

30. The average time it needs to go from spending cash to receiving cash
Current Assets
Income from Operations
Qualitative Characteristics
Normal Operating Cycle

31. Accounts reflect the amount of assets invested by stockholders
Current Assets
Net Income
Contributed Capital
Asset Turnover

32. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Return on Equity
Current Assets
Working Capital

33. The relative importance of an item or event
Other Revenues and Expenses
Asset Turnover
Return on Equity
Materiality

34. 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
Materiality
Other Revenues and Expenses
Profit Margin

35. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Net Income
Qualitative Characteristics
Retained Earnings
Profit Margin