Test your basic knowledge |

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






2. Merchandise held for sale to customers






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






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






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






6. Cost allocated to each year of the assets life






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






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






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






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






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






12. 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






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






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






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






16. Costs incurred to produce revenues






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






18. Assets=

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


19. Retained earnings + Net Income - (Dividends)






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






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






22. Actual currency - bank accounts - and investments that can be liquidated immediately






23. All assets not listed as current






24. Firm's ability to satisfy long term debt






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






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






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






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






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






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






31. A legal value assigned to each share of stock






32. Equals the difference between revenues and cost of sales






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






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






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






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






37. Records transactions when cash is recieved or paid






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






39. Borrowing corporation records bonds payable






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






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






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






43. Amounts to be recieved in the future from customers






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






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






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






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






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






49. Cash - Accounts Recievable - Inventory






50. Extra value that is recorded when buying another company