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. Smaller proportional increases in the number of shares outstanding






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






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






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






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






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






7. Companies divide net income by the actual average number of common shares outstanding






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






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






10. Due after 12 months






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






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






13. A legal value assigned to each share of stock






14. Refer to revenues from the sale of merchandise






15. Provides a snapshot of a company's financial position as of a certain date






16. Accountants deem unusual and infrequent - may appear in the bottom section of the income statement






17. Costs incurred to produce revenues






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






19. Firm's ability to satisfy short term debt






20. Merchandise held for sale to customers






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






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






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






24. Firm's ability to satisfy long term debt






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






26. Cash - Accounts Recievable - Inventory






27. 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






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






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






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






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






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






33. Are liabilities due within 12 months






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






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






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






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






38. Reports cash inflows + cash outflows during an accounting period






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






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






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

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42. Borrowing corporation records bonds payable






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






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






45. Proportional increases in the number of shares outstanding






46. Entity loaning the money records a bond recievable






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






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






49. Stock bought back from investors not recorded as an asset because it is impossible for a company to own itself






50. All assets not listed as current