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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. Are liabilities due within 12 months
Liquidity ratios
Stock dividends
Investing activities
Current liabilites
2. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company
Earnings per share
Audits
Common size income statement
Trend index
3. Shares are bought and sold on stock exchanges such as the New york stock exchange
AICPAs
Debtor
Liquidity
Publicly traded
4. Cost of bringing in revenues
Expenses
Cash- Basis Accounting
Shares Outstanding
Gross Profit Margin
5. Measures how efficiently you can generate desired outputs from given inputs
Liquidity
Income Statement
Noncurrent assets
Productivity
6. All assets not listed as current
Noncurrent assets
Expenses
Vertical common size income statement
Times Interest Earned Ration
7. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies
Investing activities
Cost of Goods Sold
Preferred stock
Current assets
8. Sales revenue/ total assets measures how efficiently the company uses assets to generate revenue
Recievables
Asset Turnover
Financing activities
Operating Income
9. Cost allocated to each year of the assets life
Depreciation Expense
Expenses
Liquidity
SEC
10. Current assets/current liabilites - measure short term liquidity and the ability to pay current liabilities as they come due
Goodwill
Return on Common Equity
Television costs
Current ratio
11. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Retained earnings(ending)
Solvency
Return on Sales
Noncurrent assets
12. Expected to be converted into cash - sold - or consumed within the next 12 months
Contributed capital (ending)
Current assets
Stock splits
Gross Profit Margin
13. Most accounting reporting standards that formulate GAAP are set by the 7 full time voting members
FASB
Accumulated other comprehensive income
Current liabilites
Price earnings ratio
14. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors
Current ratio
Gross Profit
Financial Leverage
Dividend rate
15. Assets- Liabilitie+ Equity OR Assets Liabilities- assets
Accounting Equation
FASB
Cash- Basis Accounting
Earnings per share
16. Net Income-Preferred Dividends/Common Stockholders equity - To analyze stock performance
Liquidity
Return on Asset
Return on Common Equity
Revenue Recognition Principle
17. Carries a dividend rate which must be paid to preferred stockholders before any dividends can be paid to common stockholders
Revenues
liabilities + stockholders' equity
Preferred stock
Cash and Cash equivalents
18. Actual currency - bank accounts - and investments that can be liquidated immediately
Cash and Cash equivalents
Common-size balance sheet
Intangible assets
Noncurrent assets
19. Entity loaning the money records a bond recievable
Nonrecurring items
Debtor
Retained Earnings
Creditor
20. legislative authority to set the reporting rules for accounting info of publicly held corporations
CPAS
Stock splits
SEC
Creditor
21. A legal value assigned to each share of stock
Par value
CPAS
Noncurrent liabilities
Initial Public Offering (IPO)
22. Establish auditing standards and conduct inspections of the public accounting firm that perform audits
Net Income
Basic earnings per share
Current liabilites
PCAOB
23. Licensed by the state/conduct audits
Creditor
Television costs
CPAS
Cost of Goods Sold
24. Records transactions when cash is recieved or paid
Cash- Basis Accounting
Common-size balance sheet
Historical cost principle
Noncurrent liabilities
25. Relate to how a company finances its assets with debt or stockholders' equity
Net Sales
Financing activities
Current liabilites
Cost of Goods Sold(COGS)
26. Smaller proportional increases in the number of shares outstanding
Stock dividends
Debtor
liabilities + stockholders' equity
Television costs
27. Amounts to be recieved in the future from customers
Recievables
Contributed Capital
Accounts recievable
Operating Expenses
28. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans
Accumulated other comprehensive income
Investing activities
Earnings per share
Par value
29. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Accumulated other comprehensive income
Historical cost principle
Income Statement
Audits
30. Net Income/ total assets reveals how efficiently assets are used to generate profit
Revenue Recognition Principle
Statement of Stockholders equity
Return on Asset
Accumulated other comprehensive income
31. The total number of shares actually held by investors at a given time - =Shares issued-treasury shares
Inventories
Operating activities
Shares Outstanding
Market value per share
32. Amounts recieved from customers for products sold or services provided
Balance Sheet
Revenues
Depreciation Expense
Shares Outstanding
33. Indicate that returns or discounts were subtracted from total sales
Expenses
Net Sales
SEC
Asset Turnover
34. Assets=
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35. Firm's ability to satisfy long term debt
CPAS
Liquidity ratios
Solvency ratios
Trend index
36. Merchandise held for sale to customers
Balance Sheet
Debtor
Solvency
Inventories
37. Relate to a company's main business: selling products or services to earn net income
Dividend rate
Operating activities
Noncurrent liabilities
Contributed capital (ending)
38. Monies to be recieved by the company from customers
Common size income statement
Recievables
Par value
Extraordinary items
39. Amounts paid by stockholders to purchase common stock and preferred stock
Asset
Accrual Accounting
Return on Equity
Contributed Capital
40. Net Income-Preferred dividends/Average number of common shares outstanding - Amount of net income earned by each individual share of stock held by investors
Stock dividends
Statement of cash flows
Gross Profit
Earnings per share
41. Stock market trading price of the company's common stock
Cost of Goods Sold(COGS)
Current ratio
Noncurrent assets
Market value per share
42. 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
GAAP
Publicly traded
Accounts recievable
Financial Leverage
43. Stock bought back from investors not recorded as an asset because it is impossible for a company to own itself
Solvency ratios
Treasury stock
Television costs
Statement of Stockholders equity
44. Compares all amounts within one year to revenue of that same year
Cost of Goods Sold(COGS)
Common size income statement
Statement of Stockholders equity
Audits
45. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue
Cost of Goods Sold(COGS)
Trend index
Goodwill
Gross Profit Margin
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
Expenses
Accrual Accounting
SEC
Statement of Stockholders equity
47. Arise from the sale of long-lived assets or investments
Gains and Losses
Times Interest Earned Ration
Initial Public Offering (IPO)
PCAOB
48. Borrowing corporation records bonds payable
Common-size balance sheet
Audits
Debtor
Expenses
49. A company's ability to pay liabilities as they come due in the next year
Revenues
Liquidity
Preferred stock
Accounts Payable
50. Standardizes each item as based on a base year and reports data for subsequent years as a multiple of the standard
Horizontal common size statement
Preferred stock
Return on Common Equity
Return on Asset