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. 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






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






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






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






5. Cost allocated to each year of the assets life






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






7. Due after 12 months






8. Borrowing corporation records bonds payable






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






10. 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


11. Refer to revenues from the sale of merchandise






12. Records transactions when cash is recieved or paid






13. Entity loaning the money records a bond recievable






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






15. Revenues-Expenses






16. All assets not listed as current






17. Assets=

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


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






19. Cost of bringing in revenues






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






21. Cash - Accounts Recievable - Inventory






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






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






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






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






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






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






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






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






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






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






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






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






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






35. Smaller proportional increases in the number of shares outstanding






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






37. A legal value assigned to each share of stock






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






39. Sales revenue/ total assets measures how efficiently the company uses assets to generate revenue






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






41. Extra value that is recorded when buying another company






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






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






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






45. Operating Income/Interest Expense - compares the amount of income available to make interest payments to interest payment requirements






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






47. Equals the difference between revenues and cost of sales






48. Retained earnings + Net Income - (Dividends)






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