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






2. Retained earnings + Net Income - (Dividends)






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






4. Borrowing corporation records bonds payable






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






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






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






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






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






10. Due after 12 months






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






12. Monies to be recieved by the company from customers






13. Entity loaning the money records a bond recievable






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






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






16. Cost allocated to each year of the assets life






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






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






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






20. Amounts to be recieved in the future from customers






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






22. A legal value assigned to each share of stock






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






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






25. A company's ability to pay liabilities as they come due in the next year






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






27. Assets=

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28. Cost of bringing in revenues






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

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30. Extra value that is recorded when buying another company






31. Records transactions when cash is recieved or paid






32. Cost of television programs that will be aired during the next year






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






34. Defines ethical behavior code of professional conduct






35. Equals the difference between revenues and cost of sales






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






37. Smaller proportional increases in the number of shares outstanding






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






39. Accountants deem unusual and infrequent - may appear in the bottom section of the income statement






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






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






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






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






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






45. Idea that accountants usually record transactions when they occur - not necessarily when cash is recieved or paid






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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