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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. Amounts recieved from customers for products sold or services provided






2. All assets not listed as current






3. Retained earnings + Net Income - (Dividends)






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






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






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






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






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






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






10. Cash - Accounts Recievable - Inventory






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






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






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






14. A legal value assigned to each share of stock






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






16. Borrowing corporation records bonds payable






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






18. Amounts to be recieved in the future from customers






19. 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






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






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






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






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






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






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






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






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






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






29. Merchandise held for sale to customers






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






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






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






33. Extra value that is recorded when buying another company






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






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






36. Smaller proportional increases in the number of shares outstanding






37. Are liabilities due within 12 months






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






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






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






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






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






43. Cost of bringing in revenues






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






45. Assets=

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46. Records transactions when cash is recieved or paid






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






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






49. Due after 12 months






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







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Can you answer 50 questions in 15 minutes?


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