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. Records transactions when cash is recieved or paid






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






3. Cost allocated to each year of the assets life






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






5. Assets=

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






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






8. Proportional increases in the number of shares outstanding






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






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






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






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






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






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






15. Licensed by the state/conduct audits






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






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






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






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






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






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






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






23. Borrowing corporation records bonds payable






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






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






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






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






28. All assets not listed as current






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






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






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






32. Cash - Accounts Recievable - Inventory






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






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






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






36. Defines ethical behavior code of professional conduct






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






38. Firm's ability to satisfy long term debt






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






40. Cost of bringing in revenues






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






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






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






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






45. Are liabilities due within 12 months






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






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






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






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






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