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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. Revenues-Expenses






2. Borrowing corporation records bonds payable






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






4. Merchandise held for sale to customers






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

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






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






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






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






10. Assets=

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






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






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






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






15. Licensed by the state/conduct audits






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






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






18. Proportional increases in the number of shares outstanding






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






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






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






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






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






24. Equals the difference between revenues and cost of sales






25. Are liabilities due within 12 months






26. Rules that management must follow when preparing financial statements available to investors






27. Entity loaning the money records a bond recievable






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






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






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






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






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






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






34. 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






35. Refer to revenues from the sale of merchandise






36. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income






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






38. 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






39. Cash - Accounts Recievable - Inventory






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






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






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






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






44. Amounts to be recieved in the future from customers






45. Records transactions when cash is recieved or paid






46. Firm's ability to satisfy short term debt






47. Cost allocated to each year of the assets life






48. Due after 12 months






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






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







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