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Financial Statements

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Refer to revenues from the sale of merchandise






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

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






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






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






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






7. Defines ethical behavior code of professional conduct






8. Equals the difference between revenues and cost of sales






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






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






11. All assets not listed as current






12. Borrowing corporation records bonds payable






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






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






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






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






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






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






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






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






21. Cost allocated to each year of the assets life






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






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






24. Extra value that is recorded when buying another company






25. Smaller proportional increases in the number of shares outstanding






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






27. Records transactions when cash is recieved or paid






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






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






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






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






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






33. Due after 12 months






34. Relate to a company's main business: selling products or services to earn net income






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






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






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






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






39. Costs incurred to produce revenues






40. Current assets/current liabilites - measure short term liquidity and the ability to pay current liabilities as they come due






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






42. A legal value assigned to each share of stock






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






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






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






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






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






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






49. Merchandise held for sale to customers






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






Can you answer 50 questions in 15 minutes?



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