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






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






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






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






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






6. Assets=

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






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






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






10. A legal value assigned to each share of stock






11. Smaller proportional increases in the number of shares outstanding






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






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






14. Licensed by the state/conduct audits






15. 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






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






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






18. Firm's ability to satisfy long term debt






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






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






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

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






23. Merchandise held for sale to customers






24. Provides a snapshot of a company's financial position as of a certain date






25. Proportional increases in the number of shares outstanding






26. Are liabilities due within 12 months






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






28. Amounts to be recieved in the future from customers






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






30. Revenues-Expenses






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






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






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






34. Borrowing corporation records bonds payable






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






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






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






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






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






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






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






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






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






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






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






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






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






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






49. All assets not listed as current






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







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Can you answer 50 questions in 15 minutes?


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