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. Firm's ability to satisfy long term debt






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






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






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






5. Costs incurred to produce revenues






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






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






8. Records transactions when cash is recieved or paid






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






10. Provides a snapshot of a company's financial position as of a certain date






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






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






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






14. Licensed by the state/conduct audits






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






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






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






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






19. Merchandise held for sale to customers






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






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






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






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






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






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






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






27. Due after 12 months






28. Refer to revenues from the sale of merchandise






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






30. Monies to be recieved by the company from customers






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






32. Are liabilities due within 12 months






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






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






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






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






37. Establish auditing standards and conduct inspections of the public accounting firm that perform audits






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






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






40. Proportional increases in the number of shares outstanding






41. Smaller proportional increases in the number of shares outstanding






42. Firm's ability to satisfy short term debt






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






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






45. All assets not listed as current






46. Extra value that is recorded when buying another company






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






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






49. 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






50. Equals the difference between revenues and cost of sales