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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. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Current Ratio
Retained Earnings
Operating Expenses
Consistency

2. 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
Property - Plant - and Equipment
Investments
Working Capital
General and Administrative Expenses

3. Cost of storing goods and preparing them for sale
Normal Operating Cycle
Understandability
Selling Expenses
Working Capital

4. Total cash sales and total credit sales during an accounting period
Return on Equity
Net Sales
Gross Sales
Normal Operating Cycle

5. The relative importance of an item or event
Current Liabilities
Income Taxes
Working Capital
Materiality

6. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Gross Margin
Return on Equity
Normal Operating Cycle
Net Sales

7. Current assets / current liabilities
Selling Expenses
Current Ratio
Current Assets
Debit to Equity

8. Accounts reflect the amount of assets invested by stockholders
Return on Equity
Contributed Capital
Retained Earnings
Current Assets

9. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
Other Revenues and Expenses
Consistency
Cost Benefit

10. Difference between gross margin and operating expense
Investments
Income from Operations
Understandability
Sales Returns and Allowances

11. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Long-term Liabilities
Comparability
Understandability
Full Disclosure

12. Once a company adopted an accounting procedure - it must use it from one period to the next
Other Revenues and Expenses
Consistency
Understandability
Comparability

13. Tangible long-term assets used in a business day to day operations
Asset Turnover
Selling Expenses
Property - Plant - and Equipment
General and Administrative Expenses

14. Net income / (average owner's equity/2)
General and Administrative Expenses
Return on Equity
Property - Plant - and Equipment
Qualitative Characteristics

15. Requires all financial statements presents all information relevant to users understanding of statements
Normal Operating Cycle
Full Disclosure
Property - Plant - and Equipment
Net Sales

16. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Asset Turnover
Normal Operating Cycle
Investments

17. Not related to a company's operating activities
Normal Operating Cycle
Other Revenues and Expenses
Consistency
General and Administrative Expenses

18. FASB established standards to facilitate interpretation of accounting information
Current Assets
Full Disclosure
Qualitative Characteristics
Sales Returns and Allowances

19. Net income / (average total assets/2)
Net Sales
Materiality
Return on Assets
Net Income

20. Total liabilities / owner's equity
Profit Margin
Debit to Equity
Current Assets
Income Taxes

21. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Return on Assets
Gross Margin
Income from Operations
General and Administrative Expenses

22. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Property - Plant - and Equipment
Consistency
Profit Margin

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

24. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Conservation
Gross Margin
Current Liabilities
Normal Operating Cycle

25. Current assets - current liabilities = working capital
Cost of goods sold
Working Capital
Qualitative Characteristics
Contributed Capital

26. Benefit gained from providing information should be greater than the cost of providing it
Comparability
Selling Expenses
Cost Benefit
General and Administrative Expenses

27. Expenses incurred in running a business other than the cost of goods sold
Profit Margin
Operating Expenses
Net Sales
General and Administrative Expenses

28. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Gross Margin
Selling Expenses
Comparability
Cost Benefit

29. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Normal Operating Cycle
Other Revenues and Expenses
Current Assets
Long-term Liabilities

30. Net sales / (average total assets/2)
Asset Turnover
Working Capital
Qualitative Characteristics
Return on Assets

31. Final figure of an income statement
Current Ratio
Net Income
General and Administrative Expenses
Conservation

32. The expense for federal - state - and local taxes on corporate income
Working Capital
Retained Earnings
Income Taxes
Sales Returns and Allowances

33. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Cost of goods sold
Sales Returns and Allowances
Cost Benefit
Comparability

34. Net income / net sales
Property - Plant - and Equipment
Profit Margin
Return on Assets
Normal Operating Cycle

35. The average time it needs to go from spending cash to receiving cash
Understandability
Qualitative Characteristics
Comparability
Normal Operating Cycle