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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. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company






2. Firm's ability to satisfy long term debt






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






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






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






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






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






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






9. Refer to revenues from the sale of merchandise






10. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans






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






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






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






14. Expresses each balance sheet item as a percentage of total assets






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






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






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






18. Are liabilities due within 12 months






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






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






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






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






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






24. Defines ethical behavior code of professional conduct






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






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






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






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






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






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






31. Due after 12 months






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






33. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information






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






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






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






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






38. Cash - Accounts Recievable - Inventory






39. Net Income-Preferred Dividends/Common Stockholders equity - To analyze stock performance






40. Subtracting operating expenses from gross profit (Income from Operations)






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






42. A legal value assigned to each share of stock






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






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






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






46. Borrowing corporation records bonds payable






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






48. Extra value that is recorded when buying another company






49. All assets not listed as current






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

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