SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Defines ethical behavior code of professional conduct
AICPAs
Current liabilites
Return on Common Equity
Historical cost principle
2. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company
Initial Public Offering (IPO)
Trend index
Creditor
Balance Sheet
3. All assets not listed as current
FASB
Noncurrent assets
Common-size balance sheet
Contributed Capital
4. Operating Income/Interest Expense - compares the amount of income available to make interest payments to interest payment requirements
Accumulated Depreciation
Publicly traded
Creditor
Times Interest Earned Ration
5. Stock bought back from investors not recorded as an asset because it is impossible for a company to own itself
Treasury stock
Price earnings ratio
CPAS
Retained Earnings
6. A company's ability to pay liabilities for many years into the future
Asset
Solvency
Vertical common size balance sheet
Vertical common size income statement
7. Due after 12 months
SEC
Nonrecurring items
Accumulated Depreciation
Noncurrent liabilities
8. Cost of bringing in revenues
Stockholders
Inventories
Extraordinary items
Expenses
9. Current assets/current liabilites - measure short term liquidity and the ability to pay current liabilities as they come due
Current ratio
Extraordinary items
Productivity
Gross Profit
10. Relate to the need for investing in property - plant - and equipment or expanding by making investments in other companies
Investing activities
Return on Equity
Revenue Recognition Principle
Sales
11. Contracts that give their holders the right to buy or sell shares of stock at a certain market price
Stock options
Common size income statement
Accounting Equation
Basic earnings per share
12. Amounts to be recieved in the future from customers
Accounts recievable
Television costs
Contributed capital (ending)
Dividend rate
13. Compares all amounts within one year to revenue of that same year
Common size income statement
Inventories
Preferred stock
Asset
14. Contributed capital - beginning + issuance of shares - (Repurchase to retire shares)
Debt Ratio
Contributed capital (ending)
Retained earnings(ending)
Revenue Recognition Principle
15. Portion of assets the owners are free and clear of any liabilities
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
16. Subtracting operating expenses from gross profit (Income from Operations)
Operating Income
Stock options
Statement of cash flows
Revenue Recognition Principle
17. Measures how efficiently you can generate desired outputs from given inputs
Productivity
Stock splits
Investing activities
Current ratio
18. Largest expense item which reports the wholesale costs of inventory sold during the accounting period
Times Interest Earned Ration
Cost of Goods Sold
Stock dividends
Debt Ratio
19. A company's ability to pay liabilities as they come due in the next year
Retained Earnings
Liquidity
Revenue Recognition Principle
Trend index
20. Accountants deem unusual and infrequent - may appear in the bottom section of the income statement
Nonrecurring items
Retained earnings(ending)
Return on Asset
Statement of cash flows
21. 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
Times Interest Earned Ration
Solvency
Accounts recievable
22. Net Income/Sales Revenue measures the profitability of each dollar of revenue
Expenses
Return on Sales
Operating Income
Nonrecurring items
23. Are liabilities due within 12 months
Solvency ratios
Stock splits
Accumulated Depreciation
Current liabilites
24. Entity loaning the money records a bond recievable
Discontinued Operations
AICPAs
Debtor
Creditor
25. Cash - Accounts Recievable - Inventory
Trend index
Current ratio
Cash- Basis Accounting
Example of Current Asset
26. Highly unusual transactions that are considered unusual in nature and infrequent in occurence
Extraordinary items
Price earnings ratio
Retained Earnings
Investing activities
27. Reports the company's profitability during an accounting period
Return on Sales
Income Statement
Contributed Capital
Stockholders
28. Amounts that the corporation must pay to suppliers in the future
Historical cost principle
Basic earnings per share
Liquidity ratios
Accounts Payable
29. Compares all amounts within on year to total assets of that same year
Gross Profit Margin
Common-size balance sheet
Sales
Investing activities
30. Proportional increases in the number of shares outstanding
Stock splits
Asset
Retained Earnings
Common size income statement
31. Market price per share/EPS - to measure how expensive a company's stock is compared to EPS
Return on Sales
Contributed capital (ending)
Retained Earnings
Price earnings ratio
32. Net Income/ total assets reveals how efficiently assets are used to generate profit
Return on Asset
Return on Common Equity
Historical cost principle
Gains and Losses
33. Recorded when a company closes down or sells part of its business
Solvency ratios
Contributed capital (ending)
Discontinued Operations
Horizontal common size statement
34. Firm's ability to satisfy short term debt
Price earnings ratio
Market value per share
Stockholders
Liquidity ratios
35. Borrowing corporation records bonds payable
Asset
Debtor
Accrual Accounting
Vertical common size income statement
36. Refer to revenues from the sale of merchandise
Net Sales
Sales
Cost of Goods Sold
Operating Expenses
37. Cost of television programs that will be aired during the next year
Basic earnings per share
Debtor
Television costs
Accounts recievable
38. Monies to be recieved by the company from customers
GAAP
Stockholders' Equity
Recievables
Liquidity ratios
39. States that companies should record assets and services at their acquisition cost - the amount paid for them - because this is the most reliable information
Historical cost principle
Current liabilites
Productivity
Income Statement
40. This is what it costs to produce a product or provide a service
Accumulated Depreciation
Cost of Goods Sold(COGS)
Stock splits
Common-size balance sheet
41. Cost allocated to each year of the assets life
Depreciation Expense
Financial Leverage
Horizontal common size statement
Statement of Stockholders equity
42. Assets=
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
43. Records transactions when cash is recieved or paid
Shares Outstanding
Cash- Basis Accounting
Creditor
Vertical common size income statement
44. Revenues-Expenses
Accrual Accounting
AICPAs
Net Income
Current liabilites
45. Rules that management must follow when preparing financial statements available to investors
Times Interest Earned Ration
Historical cost principle
GAAP
liabilities + stockholders' equity
46. Licensed by the state/conduct audits
CPAS
Productivity
Earnings per share
GAAP
47. Provides a snapshot of a company's financial position as of a certain date
Discontinued Operations
Stockholders
Intangible assets
Balance Sheet
48. Patents - trademarks - and copyrights that have value but not any physical presence
Intangible assets
Revenue Recognition Principle
Discontinued Operations
Asset Turnover
49. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income
Return on Equity
Common-size balance sheet
SEC
Operating activities
50. Shares are bought and sold on stock exchanges such as the New york stock exchange
Cost of Goods Sold(COGS)
Accumulated other comprehensive income
AICPAs
Publicly traded