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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
Current Assets
Selling Expenses
Conservation
Other Revenues and Expenses

2. Debts that fall due more than 1 year in the future or beyond the normal operating cycle
Investments
Long-term Liabilities
Consistency
Property - Plant - and Equipment

3. When a choice between 2 equally acceptable procedures - choose the one least like to overstate assets or income
Normal Operating Cycle
General and Administrative Expenses
Conservation
Return on Assets

4. Total liabilities / owner's equity
Debit to Equity
Full Disclosure
General and Administrative Expenses
Cost of goods sold

5. 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
Cost Benefit
Return on Assets
Cost of goods sold
Investments

6. Cash refunds - credit on account - and discounts from selling prices made to customers who have received defective products or products that are otherwise unsatisfactory
Sales Returns and Allowances
Contributed Capital
Full Disclosure
Gross Margin

7. Represents the stockholder's claim to the assets that are earned from operations and reinvested in corporate operations
Retained Earnings
Return on Assets
Debit to Equity
Income from Operations

8. Accounts reflect the amount of assets invested by stockholders
Contributed Capital
Net Sales
Working Capital
Current Assets

9. Gross proceeds from sales less sales returns and allowance and any discounts allowed
Normal Operating Cycle
Net Sales
Gross Margin
Other Revenues and Expenses

10. Accountants prepare financial statements in accordance with practices that are intended to make the information understandable
Understandability
General and Administrative Expenses
Return on Equity
Investments

11. Final figure of an income statement
Income Taxes
Net Income
Operating Expenses
Retained Earnings

12. Obligations that must be satisfied within 1 year or within normal operating cycle
Net Income
Cost of goods sold
Current Liabilities
Investments

13. Difference between gross margin and operating expense
Comparability
Asset Turnover
Income from Operations
Cost of goods sold

14. Cash and other asset that a company can reasonably expect to covert to cash. sell - or consumer within 1 year
Income from Operations
Current Ratio
Current Assets
Normal Operating Cycle

15. The average time it needs to go from spending cash to receiving cash
Gross Margin
Materiality
Current Assets
Normal Operating Cycle

16. FASB established standards to facilitate interpretation of accounting information
Qualitative Characteristics
General and Administrative Expenses
Materiality
Comparability

17. Tangible long-term assets used in a business day to day operations
Normal Operating Cycle
Retained Earnings
Other Revenues and Expenses
Property - Plant - and Equipment

18. Net income / net sales
Profit Margin
Selling Expenses
Long-term Liabilities
Other Revenues and Expenses

19. The relative importance of an item or event
Net Sales
Property - Plant - and Equipment
Materiality
Working Capital

20. Requires all financial statements presents all information relevant to users understanding of statements
Comparability
Profit Margin
Full Disclosure
Asset Turnover

21. Once a company adopted an accounting procedure - it must use it from one period to the next
Debit to Equity
Gross Sales
Gross Margin
Consistency

22. Amount a merchandiser paid for the merchandise it sold during an accounting period
Cost of goods sold
General and Administrative Expenses
Current Ratio
Long-term Liabilities

23. Expenses for accounting - personal - credit checking - collections - and other expenses that apply to insure expenses
Conservation
Cost of goods sold
General and Administrative Expenses
Current Ratio

24. Net sales / (average total assets/2)
Other Revenues and Expenses
Normal Operating Cycle
Income Taxes
Asset Turnover

25. Current assets - current liabilities = working capital
Full Disclosure
Retained Earnings
Working Capital
Net Sales

26. Current assets / current liabilities
Profit Margin
Cost Benefit
Current Ratio
Full Disclosure

27. The difference between net sales and the cost of goods sold
Return on Equity
Retained Earnings
Comparability
Gross Margin

28. Total cash sales and total credit sales during an accounting period
Net Income
Working Capital
Cost Benefit
Gross Sales

29. Not related to a company's operating activities
Gross Sales
Qualitative Characteristics
Debit to Equity
Other Revenues and Expenses

30. Benefit gained from providing information should be greater than the cost of providing it
Materiality
Income from Operations
Return on Assets
Cost Benefit

31. Net income / (average total assets/2)
Return on Assets
Retained Earnings
Normal Operating Cycle
Long-term Liabilities

32. Expenses incurred in running a business other than the cost of goods sold
Operating Expenses
General and Administrative Expenses
Understandability
Contributed Capital

33. Information presented in such a way that decision makers can recognize similarities - differences - and trends over different periods
Investments
Net Sales
Profit Margin
Comparability

34. The expense for federal - state - and local taxes on corporate income
Sales Returns and Allowances
Normal Operating Cycle
Income Taxes
Operating Expenses

35. Net income / (average owner's equity/2)
Working Capital
Current Ratio
General and Administrative Expenses
Return on Equity