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