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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. A legal value assigned to each share of stock






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






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






4. Extra value that is recorded when buying another company






5. Operating Income/Interest Expense - compares the amount of income available to make interest payments to interest payment requirements






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






7. Firm's ability to satisfy short term debt






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






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






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






11. Cost of bringing in revenues






12. Defines ethical behavior code of professional conduct






13. Firm's ability to satisfy long term debt






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






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






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






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

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18. Refer to revenues from the sale of merchandise






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






20. Equals the difference between revenues and cost of sales






21. Smaller proportional increases in the number of shares outstanding






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






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






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






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






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






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






28. Merchandise held for sale to customers






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






30. Rules that management must follow when preparing financial statements available to investors






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






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






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






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






35. Assets=

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36. Due after 12 months






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






38. Cash - Accounts Recievable - Inventory






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






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






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






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






43. Retained earnings + Net Income - (Dividends)






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






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






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






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






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






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






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