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Test your basic knowledge |
Financial Statements
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans
Trend index
Accumulated other comprehensive income
Financial Leverage
Income Statement
2. Entities owning shares of stock are the owners of the corporation
Stockholders
Operating Income
PCAOB
Retained Earnings
3. Relate to how a company finances its assets with debt or stockholders' equity
Productivity
Investing activities
Financing activities
Accumulated other comprehensive income
4. Records transactions when cash is recieved or paid
Extraordinary items
Cash- Basis Accounting
Liquidity ratios
CPAS
5. Merchandise held for sale to customers
Audits
AICPAs
Solvency ratios
Inventories
6. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue
Common-size balance sheet
Extraordinary items
Gross Profit Margin
Income Statement
7. Total liabilities/ Total assets reveals the proportion of assets financed with debt and solvency
Expenses
Common size income statement
Debt Ratio
Accumulated Depreciation
8. Smaller proportional increases in the number of shares outstanding
Debtor
Stock dividends
Revenue Recognition Principle
Historical cost principle
9. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies
Investing activities
Example of Current Asset
Accounting Equation
Productivity
10. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors
Treasury stock
Dividend rate
Gross Profit
Operating Expenses
11. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Trend index
Accounts recievable
Treasury stock
Return on Sales
12. Amounts to be recieved in the future from customers
Net Sales
Accounts recievable
Operating Expenses
Par value
13. All assets not listed as current
Noncurrent assets
Trend index
Gross Profit
Sales
14. Standardizes each item as based on a base year and reports data for subsequent years as a multiple of the standard
Return on Common Equity
Horizontal common size statement
Asset Turnover
Common size income statement
15. Compares all amounts within on year to total assets of that same year
Accumulated Depreciation
Return on Asset
Gross Profit Margin
Common-size balance sheet
16. Reports the company's profitability during an accounting period
Income Statement
PCAOB
Return on Sales
Financing activities
17. Assets- Liabilitie+ Equity OR Assets Liabilities- assets
Accounting Equation
Asset Turnover
Investing activities
Times Interest Earned Ration
18. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Publicly traded
Historical cost principle
Times Interest Earned Ration
Price earnings ratio
19. Firm's ability to satisfy short term debt
Liquidity ratios
Television costs
Depreciation Expense
Debt Ratio
20. Items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares
Revenues
Stock splits
Asset
Cash and Cash equivalents
21. Highly unusual transactions that are considered unusual in nature and infrequent in occurence
Expenses
Preferred stock
Extraordinary items
Operating Income
22. Expresses each income statement item as a percentage of sales
Accumulated other comprehensive income
Contributed capital (ending)
Return on Sales
Vertical common size income statement
23. Proportional increases in the number of shares outstanding
Investing activities
Stock splits
Stock options
Publicly traded
24. A company's ability to pay liabilities for many years into the future
Solvency
Accumulated other comprehensive income
Accounts recievable
Stockholders
25. Actual currency - bank accounts - and investments that can be liquidated immediately
Price earnings ratio
Return on Asset
Cash and Cash equivalents
Solvency
26. Arise from the sale of long-lived assets or investments
Gains and Losses
Cost of Goods Sold(COGS)
Discontinued Operations
Financing activities
27. Defines ethical behavior code of professional conduct
Debt Ratio
Solvency ratios
Market value per share
AICPAs
28. Revenues-Expenses
Net Income
Accounting Equation
Extraordinary items
FASB
29. legislative authority to set the reporting rules for accounting info of publicly held corporations
Return on Common Equity
SEC
Nonrecurring items
Accumulated Depreciation
30. Attest to whether a company's financial statements comply with the GAAP rules
Statement of Stockholders equity
Accounting Equation
Audits
Contributed Capital
31. Borrowing corporation records bonds payable
Earnings per share
Liquidity ratios
Current assets
Debtor
32. Cost of television programs that will be aired during the next year
Noncurrent liabilities
Financial Leverage
PCAOB
Television costs
33. Cash - Accounts Recievable - Inventory
Gross Profit Margin
AICPAs
Example of Current Asset
Treasury stock
34. Measures how efficiently you can generate desired outputs from given inputs
Vertical common size balance sheet
Preferred stock
Productivity
Example of Current Asset
35. Total amount of depreciation expensed since the assets' date of purchase
Statement of Stockholders equity
Dividend rate
Trend index
Accumulated Depreciation
36. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS
Balance Sheet
CPAS
Financial Leverage
Price earnings ratio
37. Shares are bought and sold on stock exchanges such as the New york stock exchange
Financial Leverage
Expenses
Revenues
Publicly traded
38. Patents - trademarks - and copyrights that have value but not any physical presence
Intangible assets
Basic earnings per share
AICPAs
Goodwill
39. Contracts that give their holders the right to buy or sell shares of stock at a certain market price
Stock options
Asset Turnover
Vertical common size balance sheet
GAAP
40. Establish auditing standards and conduct inspections of the public accounting firm that perform audits
Debtor
AICPAs
Gross Profit
PCAOB
41. Due after 12 months
Investing activities
Depreciation Expense
Retained Earnings
Noncurrent liabilities
42. Cost allocated to each year of the assets life
Depreciation Expense
SEC
CPAS
Noncurrent assets
43. Largest expense item which reports the wholesale costs of inventory sold during the accounting period
Cost of Goods Sold
Net Sales
Common-size balance sheet
AICPAs
44. Firm's ability to satisfy long term debt
Contributed Capital
Accounts Payable
Statement of cash flows
Solvency ratios
45. This is what it costs to produce a product or provide a service
Net Sales
Solvency ratios
SEC
Cost of Goods Sold(COGS)
46. 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
Accrual Accounting
Statement of Stockholders equity
Income Statement
Extraordinary items
47. Relate to a company's main business: selling products or services to earn net income
Accumulated other comprehensive income
Operating activities
Revenues
Accrual Accounting
48. Idea that accountants usually record transactions when they occur - not necessarily when cash is recieved or paid
Current liabilites
Revenue Recognition Principle
Financial Leverage
Accrual Accounting
49. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company
Accounts recievable
Goodwill
Trend index
Financing activities
50. A company's ability to pay liabilities as they come due in the next year
Liquidity
Audits
Intangible assets
Basic earnings per share
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