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






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






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






4. Due after 12 months






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






6. Firm's ability to satisfy long term debt






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






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






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






10. Extra value that is recorded when buying another company






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






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






13. Are liabilities due within 12 months






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






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






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






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






18. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income






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






20. Merchandise held for sale to customers






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






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






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






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






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






26. Assets=

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27. Defines ethical behavior code of professional conduct






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






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






30. Entity loaning the money records a bond recievable






31. 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






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






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






34. Proportional increases in the number of shares outstanding






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






36. Revenues-Expenses






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

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






39. Smaller proportional increases in the number of shares outstanding






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






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






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






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






44. Cost of bringing in revenues






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






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






47. Amounts to be recieved in the future from customers






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






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






50. Retained earnings + Net Income - (Dividends)