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Test your basic knowledge |
Financial Reporting And Analysis
Start Test
Study First
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. The average time it needs to go from spending cash to receiving cash
Asset Turnover
Investments
Normal Operating Cycle
Retained Earnings
2. Net income / (average owner's equity/2)
Operating Expenses
Working Capital
Qualitative Characteristics
Return on Equity
3. Expenses incurred in running a business other than the cost of goods sold
Working Capital
Operating Expenses
Gross Sales
Contributed Capital
4. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Materiality
Current Ratio
Conservation
Net Sales
5. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Comparability
Cost of goods sold
Gross Sales
Current Assets
6. Tangible long-term assets used in a business day to day operations
Asset Turnover
Net Sales
Property - Plant - and Equipment
Current Liabilities
7. Total cash sales and total credit sales during an accounting period
Other Revenues and Expenses
Gross Sales
Profit Margin
Current Assets
8. Net income / (average total assets/2)
Debit to Equity
Materiality
Return on Assets
Current Liabilities
9. Obligations that must be satisfied within 1 year or within normal operating cycle
Selling Expenses
Net Sales
Sales Returns and Allowances
Current Liabilities
10. Final figure of an income statement
Consistency
Current Liabilities
Operating Expenses
Net Income
11. Accounts reflect the amount of assets invested by stockholders
Other Revenues and Expenses
Contributed Capital
Full Disclosure
Income from Operations
12. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Other Revenues and Expenses
Full Disclosure
General and Administrative Expenses
Normal Operating Cycle
13. Net sales / (average total assets/2)
Operating Expenses
Return on Assets
Cost Benefit
Asset Turnover
14. Once a company adopted an accounting procedure - it must use it from one period to the next
Gross Sales
Operating Expenses
Contributed Capital
Consistency
15. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Asset Turnover
General and Administrative Expenses
Retained Earnings
Investments
16. The relative importance of an item or event
Materiality
Current Ratio
Gross Margin
Gross Sales
17. Not related to a company's operating activities
Current Liabilities
Gross Margin
Other Revenues and Expenses
Income Taxes
18. Requires all financial statements presents all information relevant to users understanding of statements
Gross Margin
Full Disclosure
Working Capital
Retained Earnings
19. Current assets / current liabilities
Return on Equity
Profit Margin
Long-term Liabilities
Current Ratio
20. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Debit to Equity
Normal Operating Cycle
Gross Sales
21. Benefit gained from providing information should be greater than the cost of providing it
Cost Benefit
Materiality
Income from Operations
Comparability
22. Current assets - current liabilities = working capital
Cost Benefit
Comparability
Working Capital
Investments
23. Cost of storing goods and preparing them for sale
Selling Expenses
Current Liabilities
Net Income
Cost Benefit
24. Difference between gross margin and operating expense
Return on Equity
Net Sales
Income from Operations
Property - Plant - and Equipment
25. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Operating Expenses
Property - Plant - and Equipment
Retained Earnings
26. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Sales Returns and Allowances
Income Taxes
Comparability
Qualitative Characteristics
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
Working Capital
Sales Returns and Allowances
General and Administrative Expenses
Understandability
28. Total liabilities / owner's equity
Cost of goods sold
Cost Benefit
Debit to Equity
Investments
29. The expense for federal - state - and local taxes on corporate income
Current Ratio
Income Taxes
Qualitative Characteristics
Current Assets
30. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Normal Operating Cycle
Materiality
Income Taxes
31. 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
Profit Margin
Investments
Conservation
Long-term Liabilities
32. The difference between net sales and the cost of goods sold
Long-term Liabilities
Materiality
Gross Margin
Asset Turnover
33. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Full Disclosure
Net Income
Selling Expenses
Conservation
34. FASB established standards to facilitate interpretation of accounting information
Cost Benefit
Full Disclosure
Qualitative Characteristics
Current Assets
35. Net income / net sales
Debit to Equity
Net Income
Profit Margin
Cost Benefit