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Test your basic knowledge |
Financial Statements
Start Test
Study First
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. Cost of television programs that will be aired during the next year
Return on Equity
Income Statement
Television costs
Par value
2. Retained earnings + Net Income - (Dividends)
Preferred stock
Retained earnings(ending)
Net Sales
Solvency ratios
3. Entity loaning the money records a bond recievable
Creditor
Noncurrent liabilities
Extraordinary items
Income Statement
4. Standardizes each item as based on a base year and reports data for subsequent years as a multiple of the standard
Revenues
Accumulated Depreciation
Television costs
Horizontal common size statement
5. Relate to how a company finances its assets with debt or stockholders' equity
Market value per share
Financing activities
SEC
Audits
6. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS
Debtor
Return on Asset
Price earnings ratio
Dividend rate
7. Assets- Liabilitie+ Equity OR Assets Liabilities- assets
Accounting Equation
Cost of Goods Sold
GAAP
Current ratio
8. Reports the company's profitability during an accounting period
Liquidity ratios
Par value
Stock options
Income Statement
9. Costs incurred to produce revenues
Current liabilites
Operating Expenses
Expenses
Contributed capital (ending)
10. Highly unusual transactions that are considered unusual in nature and infrequent in occurence
Extraordinary items
Horizontal common size statement
Expenses
Historical cost principle
11. Recorded in stockholders equity 1. unrealized gains/losses on certain securities 2. Foreign currency translation adjustments 3. Certain gains/losses on pension plans
Accumulated other comprehensive income
Television costs
liabilities + stockholders' equity
Par value
12. All assets not listed as current
Noncurrent assets
Net Sales
Discontinued Operations
Statement of cash flows
13. Measures how efficiently you can generate desired outputs from given inputs
Par value
Accrual Accounting
Productivity
Intangible assets
14. A company's ability to pay liabilities for many years into the future
Discontinued Operations
Market value per share
Current ratio
Solvency
15. Sales revenue/ total assets measures how efficiently the company uses assets to generate revenue
Asset Turnover
Contributed capital (ending)
Debtor
Inventories
16. Net Income-Preferred dividends/Average number of common shares outstanding - Amount of net income earned by each individual share of stock held by investors
Earnings per share
Stockholders' Equity
Return on Asset
Solvency ratios
17. Merchandise held for sale to customers
Financing activities
Inventories
Television costs
Cash and Cash equivalents
18. Assets=
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19. When a company sells stock to the public for the first time as a publicly traded corporation
Earnings per share
Initial Public Offering (IPO)
Accrual Accounting
Dividend rate
20. Most accounting reporting standards that formulate GAAP are set by the 7 full time voting members
Solvency ratios
FASB
Gross Profit Margin
GAAP
21. A legal value assigned to each share of stock
Revenue Recognition Principle
Common-size balance sheet
Return on Asset
Par value
22. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Current liabilites
Return on Sales
Times Interest Earned Ration
Discontinued Operations
23. 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
Initial Public Offering (IPO)
Financial Leverage
Stock splits
Noncurrent liabilities
24. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies
Investing activities
Stock dividends
AICPAs
Market value per share
25. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors
Operating Expenses
Common size income statement
Cost of Goods Sold(COGS)
Dividend rate
26. Companies divide net income by the actual average number of common shares outstanding
Basic earnings per share
Gross Profit
Accrual Accounting
Shares Outstanding
27. Due after 12 months
Par value
Common size income statement
Noncurrent liabilities
FASB
28. A company's ability to pay liabilities as they come due in the next year
Stockholders' Equity
Solvency ratios
Liquidity
Liquidity ratios
29. Firm's ability to satisfy long term debt
Nonrecurring items
Noncurrent liabilities
Noncurrent assets
Solvency ratios
30. Provides a snapshot of a company's financial position as of a certain date
Recievables
Trend index
Balance Sheet
Preferred stock
31. Contributed capital - beginning + issuance of shares - (Repurchase to retire shares)
Recievables
Contributed capital (ending)
Common-size balance sheet
Stockholders
32. Indicate that returns or discounts were subtracted from total sales
Publicly traded
Liquidity ratios
Accrual Accounting
Net Sales
33. Extra value that is recorded when buying another company
Financial Leverage
Stockholders' Equity
Goodwill
Gross Profit Margin
34. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Retained Earnings
Historical cost principle
Return on Common Equity
Audits
35. Gross profit/Sales revenue - compares gross profit to revenue expressing gross profit as a percentage of net revenue
Discontinued Operations
Stock splits
Gross Profit Margin
Expenses
36. Contracts that give their holders the right to buy or sell shares of stock at a certain market price
Earnings per share
GAAP
Stock splits
Stock options
37. The total number of shares actually held by investors at a given time - =Shares issued-treasury shares
Basic earnings per share
Statement of Stockholders equity
Net Sales
Shares Outstanding
38. Borrowing corporation records bonds payable
Gross Profit Margin
Vertical common size balance sheet
Intangible assets
Debtor
39. Net Income-Preferred Dividends/Common Stockholders equity - To analyze stock performance
Accounting Equation
Preferred stock
Return on Common Equity
Price earnings ratio
40. Patents - trademarks - and copyrights that have value but not any physical presence
Stock dividends
Intangible assets
Dividend rate
Recievables
41. Expresses each income statement item as a percentage of sales
Historical cost principle
Vertical common size income statement
Revenues
PCAOB
42. Smaller proportional increases in the number of shares outstanding
Stock dividends
Contributed capital (ending)
Common size income statement
Liquidity ratios
43. Amounts that the corporation must pay to suppliers in the future
Accounts Payable
Vertical common size balance sheet
Basic earnings per share
Stock dividends
44. Rules that management must follow when preparing financial statements available to investors
Horizontal common size statement
Vertical common size income statement
Publicly traded
GAAP
45. Shares are bought and sold on stock exchanges such as the New york stock exchange
Common-size balance sheet
Retained Earnings
Solvency ratios
Publicly traded
46. Largest expense item which reports the wholesale costs of inventory sold during the accounting period
Expenses
Productivity
Cost of Goods Sold
Gains and Losses
47. Recorded when a company closes down or sells part of its business
Asset
Net Income
Discontinued Operations
Debt Ratio
48. Equals the difference between revenues and cost of sales
Common size income statement
Discontinued Operations
Recievables
Gross Profit
49. Compares all amounts within one year to revenue of that same year
Return on Equity
Common size income statement
Publicly traded
Return on Sales
50. Cost allocated to each year of the assets life
Depreciation Expense
Accounts Payable
Extraordinary items
SEC