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/Average number of common shares outstanding - Amount of net income earned by each individual share of stock held by investors






3. A legal value assigned to each share of stock






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






5. Monies to be recieved by the company from customers






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






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






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






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






10. Assets=

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






12. Due after 12 months






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






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






15. Amounts to be recieved in the future from customers






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






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






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






19. Cost of bringing in revenues






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






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






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






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






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






25. Equals the difference between revenues and cost of sales






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






27. Proportional increases in the number of shares outstanding






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






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






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






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






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






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






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






36. 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






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






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






39. Smaller proportional increases in the number of shares outstanding






40. Cash - Accounts Recievable - Inventory






41. Are liabilities due within 12 months






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






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

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44. Merchandise held for sale to customers






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






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






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






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






49. Licensed by the state/conduct audits






50. Records transactions when cash is recieved or paid