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Financial Statements

Subject : business-skills
Instructions:
  • Answer 50 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. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans






2. Records transactions when cash is recieved or paid






3. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS






4. Operating Income/Interest Expense - compares the amount of income available to make interest payments to interest payment requirements






5. Refer to revenues from the sale of merchandise






6. Retained earnings + Net Income - (Dividends)






7. Patents - trademarks - and copyrights that have value but not any physical presence






8. Rules that management must follow when preparing financial statements available to investors






9. Licensed by the state/conduct audits






10. Expresses each balance sheet item as a percentage of total assets






11. Actual currency - bank accounts - and investments that can be liquidated immediately






12. Contributed capital - beginning + issuance of shares - (Repurchase to retire shares)






13. Entities owning shares of stock are the owners of the corporation






14. Idea that accountants usually record transactions when they occur - not necessarily when cash is recieved or paid






15. Entity loaning the money records a bond recievable






16. Portion of assets the owners are free and clear of any liabilities

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17. Relate to how a company finances its assets with debt or stockholders' equity






18. Net Income/ total assets reveals how efficiently assets are used to generate profit






19. Reports the company's profitability during an accounting period






20. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors






21. Costs incurred to produce revenues






22. Indicate that returns or discounts were subtracted from total sales






23. Revenues are recorded in the period earned - not necessarily in the period that the company collects the money






24. Relate to a company's main business: selling products or services to earn net income






25. Current assets/current liabilites - measure short term liquidity and the ability to pay current liabilities as they come due






26. Recorded when a company closes down or sells part of its business






27. This is what it costs to produce a product or provide a service






28. A company's ability to pay liabilities as they come due in the next year






29. Defines ethical behavior code of professional conduct






30. Arise from the sale of long-lived assets or investments






31. Attest to whether a company's financial statements comply with the GAAP rules






32. Net Income/Sales Revenue measures the profitability of each dollar of revenue






33. Cost of television programs that will be aired during the next year






34. Monies to be recieved by the company from customers






35. Extra value that is recorded when buying another company






36. Measures how efficiently you can generate desired outputs from given inputs






37. The total number of shares actually held by investors at a given time - =Shares issued-treasury shares






38. Stock market trading price of the company's common stock






39. Compares all amounts within one year to revenue of that same year






40. Revenues-Expenses






41. Amounts to be recieved in the future from customers






42. Net Income-Preferred dividends/Average number of common shares outstanding - Amount of net income earned by each individual share of stock held by investors






43. Total assets/Stockholders equity - Explains the difference between return on assets and return on equity. A high debt ratio and the high financial risk can boost profits






44. Equals the difference between revenues and cost of sales






45. Assets=

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46. Net Income-Preferred Dividends/Common Stockholders equity - To analyze stock performance






47. Firm's ability to satisfy long term debt






48. Establish auditing standards and conduct inspections of the public accounting firm that perform audits






49. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information






50. When a company sells stock to the public for the first time as a publicly traded corporation






Can you answer 50 questions in 15 minutes?



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