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






2. A legal value assigned to each share of stock






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






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






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






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






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






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






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






10. Are liabilities due within 12 months






11. Costs incurred to produce revenues






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






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






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






15. Cost of bringing in revenues






16. 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






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






18. Proportional increases in the number of shares outstanding






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






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






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






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






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






24. Firm's ability to satisfy long term debt






25. Refer to revenues from the sale of merchandise






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






27. Merchandise held for sale to customers






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






29. Amounts to be recieved in the future from customers






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






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






32. Smaller proportional increases in the number of shares outstanding






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






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






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






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






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






38. Records transactions when cash is recieved or paid






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






40. Licensed by the state/conduct audits






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






42. Firm's ability to satisfy short term debt






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






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






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






46. Extra value that is recorded when buying another company






47. Cash - Accounts Recievable - Inventory






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






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






50. All assets not listed as current







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Can you answer 50 questions in 15 minutes?


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