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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. Retained earnings + Net Income - (Dividends)






2. A legal value assigned to each share of stock






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






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






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






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






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






8. Firm's ability to satisfy long term debt






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






10. Smaller proportional increases in the number of shares outstanding






11. Due after 12 months






12. Refer to revenues from the sale of merchandise






13. Equals the difference between revenues and cost of sales






14. Cost allocated to each year of the assets life






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






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






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






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






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






20. 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






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






22. Monies to be recieved by the company from customers






23. 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






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






25. Net income earned by the company since its incorporation and not yet distributed as dividends






26. Licensed by the state/conduct audits






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






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






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






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






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






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






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. Proportional increases in the number of shares outstanding






35. Revenues-Expenses






36. Defines ethical behavior code of professional conduct






37. All assets not listed as current






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






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






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






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






42. Entity loaning the money records a bond recievable






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






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






45. Extra value that is recorded when buying another company






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






47. Merchandise held for sale to customers






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






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






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