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






2. Firm's ability to satisfy short term debt






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






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






5. Licensed by the state/conduct audits






6. Are liabilities due within 12 months






7. All assets not listed as current






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






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






10. Due after 12 months






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






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






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






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






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






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






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






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






19. Records transactions when cash is recieved or paid






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






21. 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






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






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






24. A legal value assigned to each share of stock






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






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






27. Assets=

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28. Equals the difference between revenues and cost of sales






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






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






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






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






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






34. Smaller proportional increases in the number of shares outstanding






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






36. Merchandise held for sale to customers






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






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






39. Cash - Accounts Recievable - Inventory






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






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






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






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






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






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






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






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






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






49. Monies to be recieved by the company from customers






50. Cost of bringing in revenues