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






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






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






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






5. Firm's ability to satisfy long term debt






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






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






8. Extra value that is recorded when buying another company






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






10. Firm's ability to satisfy short term debt






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






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






13. Cost allocated to each year of the assets life






14. Cost of bringing in revenues






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






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






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






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






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






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






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






22. Are liabilities due within 12 months






23. Revenues-Expenses






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






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






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






27. All assets not listed as current






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






29. Records transactions when cash is recieved or paid






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






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






32. Due after 12 months






33. Defines ethical behavior code of professional conduct






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






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






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






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






38. Retained earnings + Net Income - (Dividends)






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






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






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






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

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43. Merchandise held for sale to customers






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






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






46. A legal value assigned to each share of stock






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






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






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






50. Entity loaning the money records a bond recievable







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