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






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






3. Equals the difference between revenues and cost of sales






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






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






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






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






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






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






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






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






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






13. Items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares






14. Costs incurred to produce revenues






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






16. 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






17. Assets=


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






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






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






21. 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






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






23. Licensed by the state/conduct audits






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






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






26. Entity loaning the money records a bond recievable






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






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






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


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






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






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






33. All assets not listed as current






34. Smaller proportional increases in the number of shares outstanding






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






36. Are liabilities due within 12 months






37. Cost of bringing in revenues






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






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






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






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






42. Refer to revenues from the sale of merchandise






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






44. Records transactions when cash is recieved or paid






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






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






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






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






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






50. Borrowing corporation records bonds payable