Test your basic knowledge |

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






2. Retained earnings + Net Income - (Dividends)






3. Entity loaning the money records a bond recievable






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






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






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






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






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






9. Costs incurred to produce revenues






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






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. All assets not listed as current






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






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






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






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






17. Merchandise held for sale to customers






18. Assets=

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






21. A legal value assigned to each share of stock






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






23. 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






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






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






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






27. Due after 12 months






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






29. Firm's ability to satisfy long term debt






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






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






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






33. Extra value that is recorded when buying another company






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






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






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






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






38. Borrowing corporation records bonds payable






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






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






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






42. Smaller proportional increases in the number of shares outstanding






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






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






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






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






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






48. Equals the difference between revenues and cost of sales






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






50. Cost allocated to each year of the assets life