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






2. Revenues-Expenses






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






4. Items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares






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






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






7. Monies to be recieved by the company from customers






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. Costs incurred to produce revenues






10. Firm's ability to satisfy short term debt






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

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12. Merchandise held for sale to customers






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






14. Records transactions when cash is recieved or paid






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






16. 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






17. Entity loaning the money records a bond recievable






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






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






20. Amounts to be recieved in the future from customers






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






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






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






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






25. Extra value that is recorded when buying another company






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






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






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






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






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






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






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






33. A legal value assigned to each share of stock






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






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






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






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






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






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






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






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






42. Cash - Accounts Recievable - Inventory






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






44. Licensed by the state/conduct audits






45. Due after 12 months






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






47. Proportional increases in the number of shares outstanding






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






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






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







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Can you answer 50 questions in 15 minutes?


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