Test your basic knowledge |

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. Reports the company's profitability during an accounting period






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






3. Includes all costs of generating sales besides cost of sales






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






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






6. Smaller proportional increases in the number of shares outstanding






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






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






9. Equals the difference between revenues and cost of sales






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






11. Cost allocated to each year of the assets life






12. Records transactions when cash is recieved or paid






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






14. Amounts recieved from customers for products sold or services provided






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






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






17. Firm's ability to satisfy short term debt






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






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






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






21. Are liabilities due within 12 months






22. Proportional increases in the number of shares outstanding






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






24. Expected to be converted into cash - sold - or consumed within the next 12 months






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






26. Extra value that is recorded when buying another company






27. Amounts paid by stockholders to purchase common stock and preferred stock






28. Amounts that the corporation must pay to suppliers in the future






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






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






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






32. Most accounting reporting standards that formulate GAAP are set by the 7 full time voting members






33. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans






34. Due after 12 months






35. Monies to be recieved by the company from customers






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






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






38. Licensed by the state/conduct audits






39. A legal value assigned to each share of stock






40. Refer to revenues from the sale of merchandise






41. Revenues-Expenses






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






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






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






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






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






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






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






49. Carries a dividend rate which must be paid to preferred stockholders before any dividends can be paid to common stockholders






50. Merchandise held for sale to customers