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






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






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






4. Entity loaning the money records a bond recievable






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






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






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






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






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


10. Extra value that is recorded when buying another company






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






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






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






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






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






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






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






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






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






20. Indicate that returns or discounts were subtracted from total sales






21. Revenues-Expenses






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






23. Amounts to be recieved in the future from customers






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






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






26. Licensed by the state/conduct audits






27. Cost of bringing in revenues






28. Firm's ability to satisfy short term debt






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






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






31. Equals the difference between revenues and cost of sales






32. Total liabilities/ Total assets reveals the proportion of assets financed with debt and solvency






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






34. Retained earnings + Net Income - (Dividends)






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






36. A legal value assigned to each share of stock






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






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






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






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






41. Borrowing corporation records bonds payable






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






43. Cost allocated to each year of the assets life






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






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






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






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






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






49. Costs incurred to produce revenues






50. Cash - Accounts Recievable - Inventory