SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Financial Statements
Start Test
Study First
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. Monies to be recieved by the company from customers
Debtor
Recievables
Par value
Cash- Basis Accounting
2. Operating Income/Interest Expense - compares the amount of income available to make interest payments to interest payment requirements
Example of Current Asset
Horizontal common size statement
Statement of cash flows
Times Interest Earned Ration
3. Due after 12 months
Par value
Noncurrent liabilities
Audits
Revenues
4. Attest to whether a company's financial statements comply with the GAAP rules
Times Interest Earned Ration
Liquidity ratios
Audits
Balance Sheet
5. A legal value assigned to each share of stock
liabilities + stockholders' equity
Expenses
Par value
Vertical common size income statement
6. Net income earned by the company since its incorporation and not yet distributed as dividends
Recievables
Return on Sales
Productivity
Retained Earnings
7. Recorded when a company closes down or sells part of its business
Discontinued Operations
Return on Asset
Debtor
Expenses
8. Amounts that the corporation must pay to suppliers in the future
Liquidity ratios
Accounts Payable
Preferred stock
Cost of Goods Sold(COGS)
9. Net Income-Preferred dividends/Average number of common shares outstanding - Amount of net income earned by each individual share of stock held by investors
Income Statement
Earnings per share
Audits
Net Sales
10. Indicate that returns or discounts were subtracted from total sales
Cost of Goods Sold(COGS)
Solvency
Stockholders' Equity
Net Sales
11. Companies divide net income by the actual average number of common shares outstanding
Publicly traded
Cash and Cash equivalents
Basic earnings per share
Net Sales
12. Subtracting operating expenses from gross profit (Income from Operations)
Common-size balance sheet
Goodwill
Operating Income
Revenues
13. Assets=
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
14. Reports the company's profitability during an accounting period
Income Statement
Historical cost principle
Preferred stock
Liquidity
15. Licensed by the state/conduct audits
CPAS
Noncurrent assets
Investing activities
Retained earnings(ending)
16. Portion of assets the owners are free and clear of any liabilities
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
17. Contributed capital - beginning + issuance of shares - (Repurchase to retire shares)
Gross Profit Margin
Stock dividends
Contributed capital (ending)
Creditor
18. Contracts that give their holders the right to buy or sell shares of stock at a certain market price
Common size income statement
Asset Turnover
Cash- Basis Accounting
Stock options
19. Cost allocated to each year of the assets life
Depreciation Expense
Expenses
liabilities + stockholders' equity
Intangible assets
20. Items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares
Example of Current Asset
Common-size balance sheet
Asset
Balance Sheet
21. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans
Historical cost principle
Accumulated other comprehensive income
Net Income
Nonrecurring items
22. Expresses each income statement item as a percentage of sales
Gross Profit Margin
Vertical common size income statement
Revenue Recognition Principle
Solvency ratios
23. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Asset
Current assets
Return on Sales
Balance Sheet
24. Highly unusual transactions that are considered unusual in nature and infrequent in occurence
Solvency
Inventories
Extraordinary items
FASB
25. Arise from the sale of long-lived assets or investments
Publicly traded
Gains and Losses
Discontinued Operations
Expenses
26. Total liabilities/ Total assets reveals the proportion of assets financed with debt and solvency
Operating Income
Expenses
Debt Ratio
liabilities + stockholders' equity
27. When a company sells stock to the public for the first time as a publicly traded corporation
Depreciation Expense
Statement of cash flows
Nonrecurring items
Initial Public Offering (IPO)
28. Stock bought back from investors not recorded as an asset because it is impossible for a company to own itself
Times Interest Earned Ration
Earnings per share
Treasury stock
FASB
29. Equals the difference between revenues and cost of sales
Gross Profit
Vertical common size balance sheet
CPAS
Financing activities
30. Relate to a company's main business: selling products or services to earn net income
Initial Public Offering (IPO)
Preferred stock
Operating activities
Accounting Equation
31. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Historical cost principle
Investing activities
Productivity
Solvency ratios
32. Compares all amounts within on year to total assets of that same year
Common-size balance sheet
Debtor
Revenue Recognition Principle
Operating Expenses
33. Expresses each balance sheet item as a percentage of total assets
Balance Sheet
Statement of Stockholders equity
Vertical common size balance sheet
Revenues
34. Amounts recieved from customers for products sold or services provided
Common size income statement
Cash and Cash equivalents
Revenues
Accounts Payable
35. Costs incurred to produce revenues
Shares Outstanding
Asset Turnover
Financing activities
Expenses
36. Extra value that is recorded when buying another company
Noncurrent assets
Creditor
Goodwill
Audits
37. Reports cash inflows + cash outflows during an accounting period
Goodwill
Contributed Capital
CPAS
Statement of cash flows
38. Sales revenue/ total assets measures how efficiently the company uses assets to generate revenue
Debt Ratio
Asset Turnover
Solvency ratios
Return on Sales
39. Compares all amounts within one year to revenue of that same year
Operating activities
Net Sales
Retained earnings(ending)
Common size income statement
40. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue
liabilities + stockholders' equity
Gross Profit Margin
Financing activities
Financial Leverage
41. Actual currency - bank accounts - and investments that can be liquidated immediately
Operating Income
Audits
Cash and Cash equivalents
Balance Sheet
42. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income
Debtor
Return on Equity
Intangible assets
Retained Earnings
43. Amounts to be recieved in the future from customers
Earnings per share
Stockholders
Gross Profit Margin
Accounts recievable
44. Idea that accountants usually record transactions when they occur - not necessarily when cash is recieved or paid
Discontinued Operations
Extraordinary items
Sales
Accrual Accounting
45. legislative authority to set the reporting rules for accounting info of publicly held corporations
Operating Expenses
Historical cost principle
SEC
Asset
46. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors
Return on Common Equity
Retained Earnings
Dividend rate
Common-size balance sheet
47. A company's ability to pay liabilities for many years into the future
Stock splits
Discontinued Operations
Solvency
Earnings per share
48. Retained earnings + Net Income - (Dividends)
Retained earnings(ending)
Stock splits
Dividend rate
Historical cost principle
49. Stock market trading price of the company's common stock
Market value per share
Sales
Operating Income
Stockholders
50. Entities owning shares of stock are the owners of the corporation
Gross Profit Margin
Stockholders
Liquidity ratios
Accrual Accounting