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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. Costs incurred to produce revenues






2. A legal value assigned to each share of stock






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






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






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






6. Licensed by the state/conduct audits






7. Equals the difference between revenues and cost of sales






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






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






10. Reports if the earnings of this accounting period are distributed as dividends or retained in the business as retained earnings. Also reports amounts paid by stockholders to purchase common stock and preferred stock






11. Assets=

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






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






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






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






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






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






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






19. Amounts to be recieved in the future from customers






20. Smaller proportional increases in the number of shares outstanding






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






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






23. Revenues-Expenses






24. Extra value that is recorded when buying another company






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






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






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






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






29. Merchandise held for sale to customers






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






31. Are liabilities due within 12 months






32. Cost allocated to each year of the assets life






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






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






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






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






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






38. Cost of bringing in revenues






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






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






41. Borrowing corporation records bonds payable






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






43. 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






44. Entity loaning the money records a bond recievable






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






46. Records transactions when cash is recieved or paid






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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