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






2. Cost of bringing in revenues






3. Proportional increases in the number of shares outstanding






4. Reports cash inflows + cash outflows during an accounting period






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






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






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






8. Merchandise held for sale to customers






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






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






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






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






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






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






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






16. Monies to be recieved by the company from customers






17. Extra value that is recorded when buying another company






18. Assets=

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






20. Due after 12 months






21. Licensed by the state/conduct audits






22. Firm's ability to satisfy short term debt






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

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24. Costs incurred to produce revenues






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






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






27. Firm's ability to satisfy long term debt






28. Cash - Accounts Recievable - Inventory






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






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






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






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






34. Retained earnings + Net Income - (Dividends)






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






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






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






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






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






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






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






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






43. Entity loaning the money records a bond recievable






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






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






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






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






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






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






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







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