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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. Amounts to be recieved in the future from customers






2. Monies to be recieved by the company from customers






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






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






5. Extra value that is recorded when buying another company






6. A legal value assigned to each share of stock






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






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






9. Firm's ability to satisfy short term debt






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






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






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






13. Records transactions when cash is recieved or paid






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






15. Cash - Accounts Recievable - Inventory






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






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






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






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






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






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






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






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






24. Defines ethical behavior code of professional conduct






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






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






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






28. 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






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






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






31. Entity loaning the money records a bond recievable






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






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






34. Retained earnings + Net Income - (Dividends)






35. Merchandise held for sale to customers






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






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






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






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






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






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






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






43. Are liabilities due within 12 months






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






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






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


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






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






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






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