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Test your basic knowledge |
Financial Statements
Start Test
Study First
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. Contributed capital - beginning + issuance of shares - (Repurchase to retire shares)
Contributed capital (ending)
Cash and Cash equivalents
Goodwill
Vertical common size income statement
2. Net Income-Preferred Dividends/Common Stockholders equity - To analyze stock performance
Investing activities
Return on Common Equity
Liquidity
Stock dividends
3. Amounts recieved from customers for products sold or services provided
Expenses
Revenues
Earnings per share
Current assets
4. Merchandise held for sale to customers
Treasury stock
Inventories
Liquidity ratios
Accounting Equation
5. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Solvency ratios
Accrual Accounting
Return on Sales
Initial Public Offering (IPO)
6. Smaller proportional increases in the number of shares outstanding
Stock dividends
Sales
liabilities + stockholders' equity
Cost of Goods Sold
7. Relate to a company's main business: selling products or services to earn net income
Current liabilites
Operating activities
Historical cost principle
Market value per share
8. 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
Vertical common size income statement
Publicly traded
Retained Earnings
Financial Leverage
9. Cost allocated to each year of the assets life
Publicly traded
Times Interest Earned Ration
Depreciation Expense
PCAOB
10. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Solvency
Price earnings ratio
Historical cost principle
Times Interest Earned Ration
11. Recorded when a company closes down or sells part of its business
Par value
Discontinued Operations
Current ratio
Nonrecurring items
12. Compares all amounts within one year to revenue of that same year
Accounting Equation
Expenses
Common size income statement
AICPAs
13. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors
Inventories
Example of Current Asset
Dividend rate
CPAS
14. Current assets/current liabilites - measure short term liquidity and the ability to pay current liabilities as they come due
Debt Ratio
Current ratio
Stockholders' Equity
Noncurrent liabilities
15. Amounts paid by stockholders to purchase common stock and preferred stock
Gains and Losses
Contributed Capital
Operating Income
Vertical common size balance sheet
16. Subtracting operating expenses from gross profit (Income from Operations)
Current assets
Discontinued Operations
Operating Income
Solvency
17. Defines ethical behavior code of professional conduct
Accumulated other comprehensive income
AICPAs
Operating activities
Income Statement
18. Stock market trading price of the company's common stock
Gross Profit Margin
Market value per share
Preferred stock
Financial Leverage
19. Attest to whether a company's financial statements comply with the GAAP rules
GAAP
Audits
Shares Outstanding
Current liabilites
20. Compares all amounts within on year to total assets of that same year
Liquidity ratios
AICPAs
Contributed capital (ending)
Common-size balance sheet
21. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS
Stockholders' Equity
Income Statement
Price earnings ratio
Gains and Losses
22. The total number of shares actually held by investors at a given time - =Shares issued-treasury shares
Current ratio
Asset
Accumulated other comprehensive income
Shares Outstanding
23. Entity loaning the money records a bond recievable
Shares Outstanding
Creditor
Sales
Cash- Basis Accounting
24. Patents - trademarks - and copyrights that have value but not any physical presence
Accounting Equation
Vertical common size income statement
Expenses
Intangible assets
25. Carries a dividend rate which must be paid to preferred stockholders before any dividends can be paid to common stockholders
Stock dividends
Television costs
Preferred stock
Net Sales
26. Expresses each balance sheet item as a percentage of total assets
Accumulated other comprehensive income
Historical cost principle
Publicly traded
Vertical common size balance sheet
27. Firm's ability to satisfy short term debt
Initial Public Offering (IPO)
Accounts Payable
Gains and Losses
Liquidity ratios
28. Contracts that give their holders the right to buy or sell shares of stock at a certain market price
SEC
Vertical common size balance sheet
Stock options
Gross Profit
29. Monies to be recieved by the company from customers
Market value per share
Investing activities
Accumulated Depreciation
Recievables
30. Expected to be converted into cash - sold - or consumed within the next 12 months
Gross Profit Margin
Market value per share
Current assets
Publicly traded
31. Standardizes each item as based on a base year and reports data for subsequent years as a multiple of the standard
Expenses
Financial Leverage
Horizontal common size statement
Asset
32. legislative authority to set the reporting rules for accounting info of publicly held corporations
Current ratio
Stockholders
Stock options
SEC
33. Assets- Liabilitie+ Equity OR Assets Liabilities- assets
Intangible assets
SEC
Debt Ratio
Accounting Equation
34. Extra value that is recorded when buying another company
Common size income statement
Financial Leverage
Audits
Goodwill
35. Total amount of depreciation expensed since the assets' date of purchase
Asset
SEC
Current ratio
Accumulated Depreciation
36. Due after 12 months
Return on Common Equity
Noncurrent liabilities
Trend index
Accounting Equation
37. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies
Sales
Return on Sales
Vertical common size balance sheet
Investing activities
38. Retained earnings + Net Income - (Dividends)
Market value per share
Statement of Stockholders equity
Retained earnings(ending)
Stock dividends
39. Shares are bought and sold on stock exchanges such as the New york stock exchange
Publicly traded
Current assets
Creditor
Common size income statement
40. Rules that management must follow when preparing financial statements available to investors
Debt Ratio
Stockholders' Equity
Audits
GAAP
41. Companies divide net income by the actual average number of common shares outstanding
Basic earnings per share
Horizontal common size statement
Audits
Noncurrent assets
42. When a company sells stock to the public for the first time as a publicly traded corporation
Cash- Basis Accounting
Recievables
Initial Public Offering (IPO)
Statement of cash flows
43. Idea that accountants usually record transactions when they occur - not necessarily when cash is recieved or paid
Basic earnings per share
Revenues
Accrual Accounting
AICPAs
44. Expresses each income statement item as a percentage of sales
Horizontal common size statement
Vertical common size income statement
Stockholders
Accounts Payable
45. Highly unusual transactions that are considered unusual in nature and infrequent in occurence
Investing activities
Extraordinary items
Return on Common Equity
Cost of Goods Sold(COGS)
46. Arise from the sale of long-lived assets or investments
Gross Profit
Productivity
Revenue Recognition Principle
Gains and Losses
47. Cash - Accounts Recievable - Inventory
Statement of Stockholders equity
Accumulated other comprehensive income
Example of Current Asset
Financial Leverage
48. Cost of television programs that will be aired during the next year
Television costs
Horizontal common size statement
Inventories
GAAP
49. Firm's ability to satisfy long term debt
Investing activities
Audits
Solvency ratios
Initial Public Offering (IPO)
50. Actual currency - bank accounts - and investments that can be liquidated immediately
Cash and Cash equivalents
Common size income statement
Return on Sales
Publicly traded