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






2. Revenues-Expenses






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






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






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






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






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






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






9. Cash - Accounts Recievable - Inventory






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






11. Firm's ability to satisfy short term debt






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






13. Includes all costs of generating sales besides cost of sales






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






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






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






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






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






19. Licensed by the state/conduct audits






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






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






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






23. Proportional increases in the number of shares outstanding






24. All assets not listed as current






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






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






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






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






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






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






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






32. Amounts to be recieved in the future from customers






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






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






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






36. Records transactions when cash is recieved or paid






37. Assets=

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






39. 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






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






41. Cost of bringing in revenues






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

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






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






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






46. Equals the difference between revenues and cost of sales






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






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






49. Are liabilities due within 12 months






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







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Can you answer 50 questions in 15 minutes?


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