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






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






3. Includes all costs of generating sales besides cost of sales






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






5. 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






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






7. Merchandise held for sale to customers






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






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






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






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






12. Retained earnings + Net Income - (Dividends)






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






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






15. Cost of bringing in revenues






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






17. Firm's ability to satisfy short term debt






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






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






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






21. Assets=

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






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






24. Due after 12 months






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






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






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






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






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






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






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






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






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






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






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






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






37. Costs incurred to produce revenues






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






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






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






41. Revenues-Expenses






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






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






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






45. Are liabilities due within 12 months






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






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

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






49. A legal value assigned to each share of stock






50. Equals the difference between revenues and cost of sales






Can you answer 50 questions in 15 minutes?



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