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






2. Assets=

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3. Entity loaning the money records a bond recievable






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






5. Retained earnings + Net Income - (Dividends)






6. Defines ethical behavior code of professional conduct






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






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






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






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






11. Revenues-Expenses






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






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






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. Due after 12 months






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






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






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






20. Monies to be recieved by the company from customers






21. Smaller proportional increases in the number of shares outstanding






22. Extra value that is recorded when buying another company






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






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






25. Firm's ability to satisfy long term debt






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






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






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






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






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






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






32. Equals the difference between revenues and cost of sales






33. Records transactions when cash is recieved or paid






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






35. Costs incurred to produce revenues






36. Cash - Accounts Recievable - Inventory






37. Merchandise held for sale to customers






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






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






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






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






42. Refer to revenues from the sale of merchandise






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






44. 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






45. Amounts to be recieved in the future from customers






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






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






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






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






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