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. Are liabilities due within 12 months






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






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






4. Cost of bringing in revenues






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






6. All assets not listed as current






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






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






9. Cost allocated to each year of the assets life






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






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






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






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






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






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






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






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






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






19. Entity loaning the money records a bond recievable






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






21. A legal value assigned to each share of stock






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






23. Licensed by the state/conduct audits






24. Records transactions when cash is recieved or paid






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






26. Smaller proportional increases in the number of shares outstanding






27. Amounts to be recieved in the future from customers






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






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






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






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






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






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






34. Assets=

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35. Firm's ability to satisfy long term debt






36. Merchandise held for sale to customers






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






38. Monies to be recieved by the company from customers






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






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






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






42. 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






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






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






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






46. 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






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






48. Borrowing corporation records bonds payable






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






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