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






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






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






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






5. Firm's ability to satisfy short term debt






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






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






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






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






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






11. Revenues-Expenses






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






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






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






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






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






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






18. Proportional increases in the number of shares outstanding






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






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






21. Assets=

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






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

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






25. Merchandise held for sale to customers






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






27. Retained earnings + Net Income - (Dividends)






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






29. Due after 12 months






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






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






32. Cash - Accounts Recievable - Inventory






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






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






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






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






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






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






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






40. Firm's ability to satisfy long term debt






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






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






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






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






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






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






47. Defines ethical behavior code of professional conduct






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






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






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