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Financial Statements

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Establish auditing standards and conduct inspections of the public accounting firm that perform audits






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






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






4. All assets not listed as current






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






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






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






8. Borrowing corporation records bonds payable






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






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






11. Defines ethical behavior code of professional conduct






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






13. Are liabilities due within 12 months






14. Licensed by the state/conduct audits






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






16. Sales revenue/ total assets measures how efficiently the company uses assets to generate revenue






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






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






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






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






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






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






23. Firm's ability to satisfy long term debt






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






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






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






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






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






29. Amounts to be recieved in the future from customers






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






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






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






33. A legal value assigned to each share of stock






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






35. Entity loaning the money records a bond recievable






36. Costs incurred to produce revenues






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






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






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






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






41. Retained earnings + Net Income - (Dividends)






42. Proportional increases in the number of shares outstanding






43. Smaller proportional increases in the number of shares outstanding






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






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






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






47. Due after 12 months






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






49. Firm's ability to satisfy short term debt






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







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