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






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






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






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






5. Merchandise held for sale to customers






6. Are liabilities due within 12 months






7. Revenues-Expenses






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






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






10. All assets not listed as current






11. Proportional increases in the number of shares outstanding






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






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






14. Smaller proportional increases in the number of shares outstanding






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






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






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






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






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






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






21. Assets- Liabilitie+ Equity OR Assets Liabilities- assets






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






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






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






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

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






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






28. Costs incurred to produce revenues






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






30. 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






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






32. Cash - Accounts Recievable - Inventory






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






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






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






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






37. Assets=

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38. Monies to be recieved by the company from customers






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






40. 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






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






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






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






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






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






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






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






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






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






50. Defines ethical behavior code of professional conduct