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






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






4. Records transactions when cash is recieved or paid






5. Merchandise held for sale to customers






6. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue






7. Total liabilities/ Total assets reveals the proportion of assets financed with debt and solvency






8. Smaller proportional increases in the number of shares outstanding






9. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies






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






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






12. Amounts to be recieved in the future from customers






13. All assets not listed as current






14. Standardizes each item as based on a base year and reports data for subsequent years as a multiple of the standard






15. Compares all amounts within on year to total assets of that same year






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






17. Assets- Liabilitie+ Equity OR Assets Liabilities- assets






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






19. Firm's ability to satisfy short term debt






20. Items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares






21. Highly unusual transactions that are considered unusual in nature and infrequent in occurence






22. Expresses each income statement item as a percentage of sales






23. Proportional increases in the number of shares outstanding






24. A company's ability to pay liabilities for many years into the future






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






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






27. Defines ethical behavior code of professional conduct






28. Revenues-Expenses






29. legislative authority to set the reporting rules for accounting info of publicly held corporations






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






31. Borrowing corporation records bonds payable






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






33. Cash - Accounts Recievable - Inventory






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






35. Total amount of depreciation expensed since the assets' date of purchase






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






37. Shares are bought and sold on stock exchanges such as the New york stock exchange






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






39. Contracts that give their holders the right to buy or sell shares of stock at a certain market price






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






41. Due after 12 months






42. Cost allocated to each year of the assets life






43. Largest expense item which reports the wholesale costs of inventory sold during the accounting period






44. Firm's ability to satisfy long term debt






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






46. Reports if the earnings of this accounting period are distributed as dividends or retained in the business as retained earnings. Also reports amounts paid by stockholders to purchase common stock and preferred stock






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






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






49. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company






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






Can you answer 50 questions in 15 minutes?



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