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






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






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

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






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






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






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






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






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






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






11. Firm's ability to satisfy short term debt






12. Amounts to be recieved in the future from customers






13. All assets not listed as current






14. Firm's ability to satisfy long term debt






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






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






17. Monies to be recieved by the company from customers






18. Retained earnings + Net Income - (Dividends)






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






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






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






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






23. Cash - Accounts Recievable - Inventory






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






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






26. Revenues-Expenses






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






28. Smaller proportional increases in the number of shares outstanding






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






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






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






32. Costs incurred to produce revenues






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






34. Extra value that is recorded when buying another company






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






36. Cost allocated to each year of the assets life






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






38. A legal value assigned to each share of stock






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






40. Records transactions when cash is recieved or paid






41. Assets=

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42. 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






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






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






45. Equals the difference between revenues and cost of sales






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






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






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






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






50. Are liabilities due within 12 months