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. Expresses each balance sheet item as a percentage of total assets






2. Cost of bringing in revenues






3. Revenues-Expenses






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






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






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






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






8. Cost allocated to each year of the assets life






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






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






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






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






13. Proportional increases in the number of shares outstanding






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






17. 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






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






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






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






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






22. Defines ethical behavior code of professional conduct






23. Merchandise held for sale to customers






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






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






26. Costs incurred to produce revenues






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






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






29. Records transactions when cash is recieved or paid






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






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






32. Expresses each income statement item as a percentage of sales






33. Are liabilities due within 12 months






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






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






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






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






38. Firm's ability to satisfy long term debt






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






40. Due after 12 months






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






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






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






44. Refer to revenues from the sale of merchandise






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






46. Entity loaning the money records a bond recievable






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






48. Borrowing corporation records bonds payable






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






50. Cash - Accounts Recievable - Inventory