Test your basic knowledge |

Financial Reporting And Analysis

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. FASB established standards to facilitate interpretation of accounting information






2. Current assets - current liabilities = working capital






3. The difference between net sales and the cost of goods sold






4. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable






5. Current assets / current liabilities






6. Net income / (average total assets/2)






7. Accounts reflect the amount of assets invested by stockholders






8. The relative importance of an item or event






9. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income






10. The expense for federal - state - and local taxes on corporate income






11. Once a company adopted an accounting procedure - it must use it from one period to the next






12. Total cash sales and total credit sales during an accounting period






13. Final figure of an income statement






14. Difference between gross margin and operating expense






15. Expenses incurred in running a business other than the cost of goods sold






16. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations






17. Total liabilities / owner's equity






18. Net sales / (average total assets/2)






19. Debts that fall due more than 1 year in the future or beyond the normal operating cycle






20. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory






21. Not related to a company's operating activities






22. Requires all financial statements presents all information relevant to users understanding of statements






23. Gross proceeds from sales less sales returns and allowance and any discounts allowed






24. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods






25. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses






26. Amount a merchandiser paid for the merchandise it sold during an accounting period






27. Benefit gained from providing information should be greater than the cost of providing it






28. Cost of storing goods and preparing them for sale






29. Net income / net sales






30. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year






31. Obligations that must be satisfied within 1 year or within normal operating cycle






32. The average time it needs to go from spending cash to receiving cash






33. Net income / (average owner's equity/2)






34. 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






35. Tangible long-term assets used in a business day to day operations