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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. Proportional increases in the number of shares outstanding






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






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






5. Defines ethical behavior code of professional conduct






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






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






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






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






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






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






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






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






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






15. Smaller proportional increases in the number of shares outstanding






16. Costs incurred to produce revenues






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






18. Revenues are recorded in the period earned - not necessarily in the period that the company collects the money






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






20. A legal value assigned to each share of stock






21. Merchandise held for sale to customers






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






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






24. Due after 12 months






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






26. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue






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






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






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






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






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






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






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






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






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






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






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






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






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






40. Equals the difference between revenues and cost of sales






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






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






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






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






45. Licensed by the state/conduct audits






46. Extra value that is recorded when buying another company






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


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






49. Cost allocated to each year of the assets life






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