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






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






3. Refer to revenues from the sale of merchandise






4. Licensed by the state/conduct audits






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






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






7. Cost allocated to each year of the assets life






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






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






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






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






12. Defines ethical behavior code of professional conduct






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






14. Smaller proportional increases in the number of shares outstanding






15. Monies to be recieved by the company from customers






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






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






18. 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






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






20. Total liabilities/ Total assets reveals the proportion of assets financed with debt and solvency






21. Expected to be converted into cash - sold - or consumed within the next 12 months






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






23. Retained earnings + Net Income - (Dividends)






24. Cash - Accounts Recievable - Inventory






25. Borrowing corporation records bonds payable






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






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






28. Extra value that is recorded when buying another company






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






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






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






32. Revenues-Expenses






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






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






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






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






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






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






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






41. All assets not listed as current






42. Records transactions when cash is recieved or paid






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






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






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






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






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






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






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






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