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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. Defines ethical behavior code of professional conduct






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






3. All assets not listed as current






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






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






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






7. Due after 12 months






8. Cost of bringing in revenues






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






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






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






12. Amounts to be recieved in the future from customers






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






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






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

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






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






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






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






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






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






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






23. Are liabilities due within 12 months






24. Entity loaning the money records a bond recievable






25. Cash - Accounts Recievable - Inventory






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






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






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






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






30. Proportional increases in the number of shares outstanding






31. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS






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






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






34. Firm's ability to satisfy short term debt






35. Borrowing corporation records bonds payable






36. Refer to revenues from the sale of merchandise






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






38. Monies to be recieved by the company from customers






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






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






41. Cost allocated to each year of the assets life






42. Assets=

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43. Records transactions when cash is recieved or paid






44. Revenues-Expenses






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






46. Licensed by the state/conduct audits






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






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






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






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