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






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

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






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






5. Cash - Accounts Recievable - Inventory






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






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






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






9. Revenues-Expenses






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






11. Includes all costs of generating sales besides cost of sales






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






13. Records transactions when cash is recieved or paid






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






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






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






17. Proportional increases in the number of shares outstanding






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






19. A legal value assigned to each share of stock






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






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






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






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






24. Extra value that is recorded when buying another company






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






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






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






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






29. Firm's ability to satisfy short term debt






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






31. Defines ethical behavior code of professional conduct






32. Relate to how a company finances its assets with debt or stockholders' equity






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






34. Due after 12 months






35. Accountants deem unusual and infrequent - may appear in the bottom section of the income statement






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






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






38. Smaller proportional increases in the number of shares outstanding






39. 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






40. Cost of bringing in revenues






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






42. Assets=

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






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






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






46. Equals the difference between revenues and cost of sales






47. Merchandise held for sale to customers






48. Borrowing corporation records bonds payable






49. Monies to be recieved by the company from customers






50. All assets not listed as current







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