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. Proportional increases in the number of shares outstanding






2. Are liabilities due within 12 months






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






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






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






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






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






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






9. Firm's ability to satisfy long term debt






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






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






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






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






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






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






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






17. Costs incurred to produce revenues






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






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






20. All assets not listed as current






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






22. Extra value that is recorded when buying another company






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






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

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






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






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






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






29. Entity loaning the money records a bond recievable






30. Licensed by the state/conduct audits






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






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






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






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






35. Smaller proportional increases in the number of shares outstanding






36. Firm's ability to satisfy short term debt






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






38. 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






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






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






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






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






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






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






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






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






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






48. Cost of television programs that will be aired during 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. Reports cash inflows + cash outflows during an accounting period