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






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






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






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






5. Entity loaning the money records a bond recievable






6. Establish auditing standards and conduct inspections of the public accounting firm that perform audits






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






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






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






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






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






12. All assets not listed as current






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






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

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15. Proportional increases in the number of shares outstanding






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






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






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






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






20. Monies to be recieved by the company from customers






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






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






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






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






25. Cost allocated to each year of the assets life






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






27. Retained earnings + Net Income - (Dividends)






28. Carries a dividend rate which must be paid to preferred stockholders before any dividends can be paid to common stockholders






29. This is what it costs to produce a product or provide a service






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






31. Due after 12 months






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






33. Licensed by the state/conduct audits






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






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






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






37. Costs incurred to produce revenues






38. Defines ethical behavior code of professional conduct






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






40. Refer to revenues from the sale of merchandise






41. Most accounting reporting standards that formulate GAAP are set by the 7 full time voting members






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






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






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






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






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






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






48. Includes all costs of generating sales besides cost of sales






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






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