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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. Difference between gross margin and operating expense
Qualitative Characteristics
General and Administrative Expenses
Income Taxes
Income from Operations

2. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Contributed Capital
Asset Turnover
Profit Margin

3. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Cost of goods sold
Current Assets
Conservation
Understandability

4. Requires all financial statements presents all information relevant to users understanding of statements
Asset Turnover
Conservation
Gross Sales
Full Disclosure

5. Expenses incurred in running a business other than the cost of goods sold
Contributed Capital
Operating Expenses
Return on Equity
Current Ratio

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

7. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Property - Plant - and Equipment
Return on Assets
Net Income
General and Administrative Expenses

8. Tangible long-term assets used in a business day to day operations
Property - Plant - and Equipment
Cost Benefit
Other Revenues and Expenses
Investments

9. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Comparability
Conservation
Current Ratio
Property - Plant - and Equipment

10. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Sales Returns and Allowances
Long-term Liabilities
Income from Operations
Selling Expenses

11. Net income / (average total assets/2)
Asset Turnover
Consistency
Return on Assets
Gross Sales

12. Not related to a company's operating activities
Conservation
Other Revenues and Expenses
Sales Returns and Allowances
Gross Margin

13. The relative importance of an item or event
General and Administrative Expenses
Materiality
Sales Returns and Allowances
Normal Operating Cycle

14. Final figure of an income statement
Gross Sales
Current Ratio
Gross Margin
Net Income

15. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Other Revenues and Expenses
Working Capital
Current Ratio

16. Accounts reflect the amount of assets invested by stockholders
Gross Margin
Full Disclosure
Contributed Capital
Net Sales

17. Once a company adopted an accounting procedure - it must use it from one period to the next
Qualitative Characteristics
Sales Returns and Allowances
Cost Benefit
Consistency

18. Net income / (average owner's equity/2)
Current Liabilities
Return on Equity
Gross Margin
Net Income

19. Net sales / (average total assets/2)
Gross Sales
Qualitative Characteristics
Asset Turnover
Net Income

20. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Cost of goods sold
Return on Equity
Understandability

21. FASB established standards to facilitate interpretation of accounting information
Selling Expenses
Qualitative Characteristics
Full Disclosure
Income Taxes

22. Total cash sales and total credit sales during an accounting period
Current Assets
Operating Expenses
Gross Sales
Property - Plant - and Equipment

23. Cost of storing goods and preparing them for sale
Return on Assets
Full Disclosure
Selling Expenses
Working Capital

24. Current assets / current liabilities
Property - Plant - and Equipment
Full Disclosure
Debit to Equity
Current Ratio

25. Total liabilities / owner's equity
Debit to Equity
Retained Earnings
Consistency
Income from Operations

26. 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
Return on Assets
Investments
Gross Sales
Current Ratio

27. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Property - Plant - and Equipment
Profit Margin
Cost Benefit
Sales Returns and Allowances

28. Amount a merchandiser paid for the merchandise it sold during an accounting period
Investments
Property - Plant - and Equipment
Cost of goods sold
Net Income

29. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Comparability
Conservation
Sales Returns and Allowances
Cost of goods sold

30. Current assets - current liabilities = working capital
Comparability
Return on Assets
Property - Plant - and Equipment
Working Capital

31. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Cost of goods sold
Net Sales
Current Liabilities
Property - Plant - and Equipment

32. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Retained Earnings
Comparability
Other Revenues and Expenses
Operating Expenses

33. The difference between net sales and the cost of goods sold
General and Administrative Expenses
Cost of goods sold
Gross Margin
Understandability

34. The expense for federal - state - and local taxes on corporate income
Full Disclosure
Income Taxes
Understandability
Contributed Capital

35. Net income / net sales
Current Ratio
Cost Benefit
Profit Margin
Property - Plant - and Equipment