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. Amounts recieved from customers for products sold or services provided






2. Are liabilities due within 12 months






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






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






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






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






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






8. Costs incurred to produce revenues






9. Cost of bringing in revenues






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






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






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






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






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






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






16. Compares all amounts within one year to revenue of that same year






17. Due after 12 months






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






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






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






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






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






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






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






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






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

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27. All assets not listed as current






28. Refer to revenues from the sale of merchandise






29. Current amount/base year amount x 100 measures the percentage of change from the base year and indicates growth trends for a company






30. Extra value that is recorded when buying another company






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






32. Monies to be recieved by the company from customers






33. Patents - trademarks - and copyrights that have value but not any physical presence






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






35. Firm's ability to satisfy short term debt






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






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






38. Smaller proportional increases in the number of shares outstanding






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






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






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






42. 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






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






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






45. Net Income/ Stockholders Equity - measures how effectively stockholders' equity is used to produce net income






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






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






48. Revenues-Expenses






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






50. Retained earnings + Net Income - (Dividends)