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. Amounts to be recieved in the future from customers






2. Amounts that the corporation must pay to suppliers in the future






3. Firm's ability to satisfy short term debt






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






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






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






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






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






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






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






11. Retained earnings + Net Income - (Dividends)






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


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






14. Amounts recieved from customers for products sold or services provided






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






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






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






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






19. Extra value that is recorded when buying another company






20. Records transactions when cash is recieved or paid






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






22. Costs incurred to produce revenues






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






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






25. All assets not listed as current






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






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






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






29. Recorded when a company closes down or sells part of its business






30. Merchandise held for sale to customers






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






32. Proportional increases in the number of shares outstanding






33. Monies to be recieved by the company from customers






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






35. Firm's ability to satisfy long term debt






36. Reports cash inflows + cash outflows during an accounting period






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






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






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






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






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






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






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






44. Equals the difference between revenues and cost of sales






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






46. Carries a dividend rate which must be paid to preferred stockholders before any dividends can be paid to common stockholders






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






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






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






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