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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






3. 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






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






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






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






7. Merchandise held for sale to customers






8. Firm's ability to satisfy long term debt






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






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






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






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






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






14. Equals the difference between revenues and cost of sales






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






16. Borrowing corporation records bonds payable






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






18. A legal value assigned to each share of stock






19. Records transactions when cash is recieved or paid






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






21. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income






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






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






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






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






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






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






28. 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






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






30. Firm's ability to satisfy short term debt






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






32. Cost of bringing in revenues






33. Due after 12 months






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






35. Licensed by the state/conduct audits






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






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






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






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






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






41. Monies to be recieved by the company from customers






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






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






44. Cash - Accounts Recievable - Inventory






45. Defines ethical behavior code of professional conduct






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






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






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






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






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