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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. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Return on Equity
Working Capital
Debit to Equity
General and Administrative Expenses

2. Amount a merchandiser paid for the merchandise it sold during an accounting period
Contributed Capital
Cost of goods sold
Return on Equity
Current Liabilities

3. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Cost of goods sold
Return on Assets
Asset Turnover
Retained Earnings

4. FASB established standards to facilitate interpretation of accounting information
Net Sales
Consistency
Other Revenues and Expenses
Qualitative Characteristics

5. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Long-term Liabilities
Gross Sales
Understandability
Current Assets

6. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Long-term Liabilities
Property - Plant - and Equipment
Income from Operations
Comparability

7. Net income / (average owner's equity/2)
Qualitative Characteristics
Return on Equity
Selling Expenses
Investments

8. The average time it needs to go from spending cash to receiving cash
Property - Plant - and Equipment
Income from Operations
General and Administrative Expenses
Normal Operating Cycle

9. Current assets / current liabilities
Return on Assets
Current Ratio
Long-term Liabilities
Selling Expenses

10. Net income / net sales
Profit Margin
Full Disclosure
Retained Earnings
Return on Assets

11. Total cash sales and total credit sales during an accounting period
Materiality
Current Liabilities
Understandability
Gross Sales

12. Not related to a company's operating activities
Property - Plant - and Equipment
Other Revenues and Expenses
Gross Sales
Cost Benefit

13. 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
Sales Returns and Allowances
Investments
Other Revenues and Expenses

14. Cost of storing goods and preparing them for sale
Debit to Equity
Comparability
Selling Expenses
Cost Benefit

15. Requires all financial statements presents all information relevant to users understanding of statements
Current Ratio
Selling Expenses
Full Disclosure
Long-term Liabilities

16. Total liabilities / owner's equity
Contributed Capital
Debit to Equity
Current Liabilities
Sales Returns and Allowances

17. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Contributed Capital
Debit to Equity
Net Sales
Materiality

18. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Sales Returns and Allowances
Conservation
Operating Expenses
Understandability

19. Obligations that must be satisfied within 1 year or within normal operating cycle
Current Liabilities
Cost Benefit
Profit Margin
Understandability

20. Final figure of an income statement
Income from Operations
Net Sales
Comparability
Net Income

21. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Conservation
Understandability
Consistency
Sales Returns and Allowances

22. Benefit gained from providing information should be greater than the cost of providing it
Understandability
Income Taxes
Contributed Capital
Cost Benefit

23. Once a company adopted an accounting procedure - it must use it from one period to the next
Return on Equity
Income from Operations
Consistency
Long-term Liabilities

24. Difference between gross margin and operating expense
Normal Operating Cycle
Debit to Equity
Income from Operations
Contributed Capital

25. The relative importance of an item or event
Materiality
Debit to Equity
Comparability
Investments

26. Net sales / (average total assets/2)
Long-term Liabilities
Asset Turnover
Selling Expenses
Income from Operations

27. Net income / (average total assets/2)
Net Sales
Return on Assets
Retained Earnings
Normal Operating Cycle

28. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
Normal Operating Cycle
Materiality
Debit to Equity

29. The difference between net sales and the cost of goods sold
Gross Margin
Consistency
Debit to Equity
Current Ratio

30. Tangible long-term assets used in a business day to day operations
Property - Plant - and Equipment
Net Income
Contributed Capital
Asset Turnover

31. Accounts reflect the amount of assets invested by stockholders
Comparability
Operating Expenses
Contributed Capital
Gross Margin

32. 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
Full Disclosure
Other Revenues and Expenses
Materiality

33. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Comparability
Current Assets
Operating Expenses
Cost Benefit

34. The expense for federal - state - and local taxes on corporate income
Return on Assets
Income Taxes
Property - Plant - and Equipment
Full Disclosure

35. Current assets - current liabilities = working capital
Cost Benefit
Consistency
Working Capital
Current Liabilities