Test your basic knowledge |

Financial Statements

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Are liabilities due within 12 months






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






3. Borrowing corporation records bonds payable






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






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






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






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






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






9. Defines ethical behavior code of professional conduct






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






11. Merchandise held for sale to customers






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






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






14. Equals the difference between revenues and cost of sales






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






16. Amounts to be recieved in the future from customers






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






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






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






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






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






22. Smaller proportional increases in the number of shares outstanding






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






24. Due after 12 months






25. Entity loaning the money records a bond recievable






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






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






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






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

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






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






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






33. All assets not listed as current






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






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






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






37. Extra value that is recorded when buying another company






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






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






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






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






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






43. Cost of bringing in revenues






44. A legal value assigned to each share of stock






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






46. Cash - Accounts Recievable - Inventory






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






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






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






50. Proportional increases in the number of shares outstanding