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. Monies to be recieved by the company from customers






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






3. Due after 12 months






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






5. A legal value assigned to each share of stock






6. Net income earned by the company since its incorporation and not yet distributed as dividends






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






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






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






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






11. Companies divide net income by the actual average number of common shares outstanding






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






13. Assets=

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






15. Licensed by the state/conduct audits






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

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






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






19. Cost allocated to each year of the assets life






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






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






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






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






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






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






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






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






28. Stock bought back from investors not recorded as an asset because it is impossible for a company to own itself






29. Equals the difference between revenues and cost of sales






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






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






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






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






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






35. Costs incurred to produce revenues






36. Extra value that is recorded when buying another company






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






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






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






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






41. Actual currency - bank accounts - and investments that can be liquidated immediately






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






43. Amounts to be recieved in the future from customers






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






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






46. Annual common stock dividends paid/average number of common shares outstanding - amount of dividends paid annually for each share of stock held by investors






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






48. Retained earnings + Net Income - (Dividends)






49. Stock market trading price of the company's common stock






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