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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. Merchandise held for sale to customers






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






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






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






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






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






7. Proportional increases in the number of shares outstanding






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






9. Records transactions when cash is recieved or paid






10. Are liabilities due within 12 months






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






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






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






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






15. Costs incurred to produce revenues






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






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






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






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






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






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






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






23. Assets=

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24. All assets not listed as current






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






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






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






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






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






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






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






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






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






34. Licensed by the state/conduct audits






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






36. Borrowing corporation records bonds payable






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






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






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






40. Equals the difference between revenues and cost of sales






41. Defines ethical behavior code of professional conduct






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






43. Extra value that is recorded when buying another company






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






45. Refer to revenues from the sale of merchandise






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






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






48. 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






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






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