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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. Cost of storing goods and preparing them for sale
Comparability
Asset Turnover
Selling Expenses
Operating Expenses

2. Net income / (average total assets/2)
Return on Assets
Return on Equity
Conservation
Profit Margin

3. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Profit Margin
Current Ratio
Sales Returns and Allowances
Conservation

4. Current assets / current liabilities
Materiality
Operating Expenses
Qualitative Characteristics
Current Ratio

5. The difference between net sales and the cost of goods sold
Other Revenues and Expenses
Current Ratio
Gross Margin
Current Assets

6. Net income / net sales
Comparability
Normal Operating Cycle
Profit Margin
Materiality

7. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Sales Returns and Allowances
Comparability
Working Capital
Income Taxes

8. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Net Income
Return on Equity
Current Assets
Long-term Liabilities

9. Total cash sales and total credit sales during an accounting period
Gross Sales
Sales Returns and Allowances
Comparability
Current Liabilities

10. The expense for federal - state - and local taxes on corporate income
Income Taxes
Income from Operations
Full Disclosure
Operating Expenses

11. Once a company adopted an accounting procedure - it must use it from one period to the next
Gross Margin
Consistency
General and Administrative Expenses
Contributed Capital

12. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Gross Sales
Long-term Liabilities
Sales Returns and Allowances
Current Assets

13. Not related to a company's operating activities
Income from Operations
Other Revenues and Expenses
Long-term Liabilities
Working Capital

14. Requires all financial statements presents all information relevant to users understanding of statements
Full Disclosure
Net Income
Asset Turnover
Cost of goods sold

15. Net sales / (average total assets/2)
Current Ratio
Consistency
Asset Turnover
Net Income

16. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Net Sales
Long-term Liabilities
Sales Returns and Allowances
Conservation

17. Difference between gross margin and operating expense
Contributed Capital
Other Revenues and Expenses
Income from Operations
Working Capital

18. Total liabilities / owner's equity
Cost of goods sold
Debit to Equity
Understandability
Asset Turnover

19. Tangible long-term assets used in a business day to day operations
General and Administrative Expenses
Income Taxes
Property - Plant - and Equipment
Comparability

20. Final figure of an income statement
Conservation
Current Ratio
Net Income
Cost of goods sold

21. FASB established standards to facilitate interpretation of accounting information
Gross Margin
Qualitative Characteristics
Net Income
Gross Sales

22. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Net Income
General and Administrative Expenses
Full Disclosure
Asset Turnover

23. Accounts reflect the amount of assets invested by stockholders
Contributed Capital
Qualitative Characteristics
Sales Returns and Allowances
Net Income

24. Current assets - current liabilities = working capital
Profit Margin
Net Income
Working Capital
Return on Assets

25. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
Other Revenues and Expenses
Operating Expenses
Sales Returns and Allowances

26. Amount a merchandiser paid for the merchandise it sold during an accounting period
Profit Margin
Cost of goods sold
Income from Operations
Retained Earnings

27. The average time it needs to go from spending cash to receiving cash
Return on Equity
Income from Operations
Selling Expenses
Normal Operating Cycle

28. 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
Investments
Comparability
Return on Assets
Gross Margin

29. Net income / (average owner's equity/2)
Current Ratio
Return on Equity
Understandability
Operating Expenses

30. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Comparability
Retained Earnings
Income Taxes
Net Sales

31. The relative importance of an item or event
Materiality
Other Revenues and Expenses
Asset Turnover
Consistency

32. Obligations that must be satisfied within 1 year or within normal operating cycle
Full Disclosure
Current Liabilities
Comparability
Understandability

33. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Cost Benefit
Cost of goods sold
General and Administrative Expenses

34. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Current Ratio
Return on Equity
Gross Margin
Current Assets

35. Benefit gained from providing information should be greater than the cost of providing it
Net Income
Debit to Equity
Cost Benefit
Asset Turnover