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






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






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






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






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






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






7. Firm's ability to satisfy short term debt






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






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






10. Cost allocated to each year of the assets life






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






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






13. Entity loaning the money records a bond recievable






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






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






16. Total assets/Stockholders equity - Explains the difference between return on assets and return on equity. A high debt ratio and the high financial risk can boost profits






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






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






19. Extra value that is recorded when buying another company






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






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






22. Cost of bringing in revenues






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






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






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






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






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






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






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






30. Due after 12 months






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






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






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






34. Cash - Accounts Recievable - Inventory






35. All assets not listed as current






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






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






38. Borrowing corporation records bonds payable






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






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






41. Licensed by the state/conduct audits






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






43. Equals the difference between revenues and cost of sales






44. Smaller proportional increases in the number of shares outstanding






45. Are liabilities due within 12 months






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






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






48. A legal value assigned to each share of stock






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






50. Merchandise held for sale to customers







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Can you answer 50 questions in 15 minutes?


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