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






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






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






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






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






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






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






8. Retained earnings + Net Income - (Dividends)






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






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






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






12. Smaller proportional increases in the number of shares outstanding






13. Assets=

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






17. Amounts to be recieved in the future from customers






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






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






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






21. Cash - Accounts Recievable - Inventory






22. Refer to revenues from the sale of merchandise






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






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






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






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






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






28. All assets not listed as current






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






30. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans






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






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






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






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






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






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






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






38. Costs incurred to produce revenues






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






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






41. Licensed by the state/conduct audits






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






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






44. Firm's ability to satisfy long term debt






45. Due after 12 months






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






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






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






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






50. Compares all amounts within on year to total assets of that same year