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






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






3. A legal value assigned to each share of stock






4. Licensed by the state/conduct audits






5. 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


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






7. 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






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






9. All assets not listed as current






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






11. Smaller proportional increases in the number of shares outstanding






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






13. Cash - Accounts Recievable - Inventory






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






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






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






17. Entity loaning the money records a bond recievable






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






19. Subtracting operating expenses from gross profit (Income from Operations)






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






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






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






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






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






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






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






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






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






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






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






31. Monies to be recieved by the company from customers






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






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






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






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






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






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






38. 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






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






40. Due after 12 months






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






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






43. Net income earned by the company since its incorporation and not yet distributed as dividends






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






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






46. Cost allocated to each year of the assets life






47. Revenues-Expenses






48. Firm's ability to satisfy short term debt






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






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests