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






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






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






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






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






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






7. Borrowing corporation records bonds payable






8. Records transactions when cash is recieved or paid






9. Extra value that is recorded when buying another company






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






11. 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






12. A legal value assigned to each share of stock






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






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






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






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






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






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






19. Entity loaning the money records a bond recievable






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






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






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






23. Revenues-Expenses






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






25. Due after 12 months






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






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






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






29. Refer to revenues from the sale of merchandise






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






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






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






33. Amounts paid by stockholders to purchase common stock and preferred stock






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






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






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

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37. Cash - Accounts Recievable - Inventory






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






39. Are liabilities due within 12 months






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






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






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






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






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






45. Cost of bringing in revenues






46. Cost allocated to each year of the assets life






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






48. Amounts to be recieved in the future from customers






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






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