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






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






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






4. Merchandise held for sale to customers






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






6. Smaller proportional increases in the number of shares outstanding






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






8. 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






9. Cost allocated to each year of the assets life






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






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






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






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






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






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






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






17. Defines ethical behavior code of professional conduct






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






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






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






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






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






23. Entity loaning the money records a bond recievable






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






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






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






27. Firm's ability to satisfy short term debt






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






29. Monies to be recieved by the company from customers






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






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






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






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






34. Extra value that is recorded when buying another company






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






36. Due after 12 months






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






38. Retained earnings + Net Income - (Dividends)






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






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






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






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






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






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






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






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






47. Cash - Accounts Recievable - Inventory






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






49. Firm's ability to satisfy long term debt






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