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






2. Revenues-Expenses






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






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






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






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






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






8. Firm's ability to satisfy short term debt






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






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






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

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12. Cash - Accounts Recievable - Inventory






13. Records transactions when cash is recieved or paid






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






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






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






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






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






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






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






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






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






23. 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






24. Monies to be recieved by the company from customers






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






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






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






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






29. Licensed by the state/conduct audits






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






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






32. Due after 12 months






33. Borrowing corporation records bonds payable






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






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






36. Refer to revenues from the sale of merchandise






37. Extra value that is recorded when buying another company






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






39. Proportional increases in the number of shares outstanding






40. Entity loaning the money records a bond recievable






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






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






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






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






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






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






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






48. Cost allocated to each year of the assets life






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






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