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Accounting

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

Capital Stock

a)

all common stock and preferred stock a corporation is legally allowed to issue.

b)

Big Stock

2.

stockholder’s equity

a)

the amount that the owners of a company have invested in their business.

b)

Equity for stock holder

3.

retained earnings

a)

the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders

b)

Earnings that are retained

4.

compatibility

a)

a state in which two things are able to exist or occur together without problems or conflict.

b)

The ability to be compatable

5.

reliability

a)

the quality of being trustworthy or of performing consistently well.

b)

Ability to be reliable

6.

relevance

a)

the quality or state of being closely connected or appropriate.

b)

Relevant action

7.

full disclosure

a)

the need in business transactions to tell the "whole truth" about any matter which the other party should know in deciding to buy or contract.

b)

Fully disclosing

8.

materiality

a)

the quality or character of being material or composed of matter.

b)

Materials

9.

net sales

a)

the total amount of sales made by a business after all deductions have been considered

b)

Clean sales

10.

net purchases

a)

the gross amount of purchases made, less deductions for purchase discounts, returns, and allowances

b)

Clean purchases

11.

gross profit on sales

a)

the total sales of the firm minus the total cost of the goods sold

b)

Dirty sales

12.

operating expenses

a)

the fixed costs your business incurs that are not directly related to production

b)

Active expenses

13.

selling expenses

a)

the costs associated with distributing, marketing and selling a product or service

b)

Expenses that are sold

14.

administrative expenses

a)

the costs of paying wages and salaries and providing benefits to non-sales personnel

b)

Administrative actions that are expenses

15.

operating income

a)

the adjusted revenue of a company after all expenses of operation and depreciation are subtracted

b)

Income thats active

16.

vertical analysis

a)

the comparison of financial statements by representing each line item on the statement as a percentage of another line item

b)

analyzing vertical

17.

statement of retained earnings

a)

shows the accumulated profit of a company after dividend are paid to shareholders

b)

Statement showing earnings

18.

horizontal analysis

a)

a financial analysis technique used to evaluate a company's performance over time

b)

analyzing horizontally

19.

base period

a)

the period of time for which data used as the base of an index number, or other ratio, have been collected

b)

regular period

20.

cash inflows

a)

the money going into a business which could be from sales, investments or financing

b)

The flow of cash

21.

cash outflows

a)

any money leaving a business

b)

Cash flowing out

22.

operating activities

a)

all the things a company does to bring its products and services to market on an ongoing basis

b)

Active operations

23.

investing activities

a)

the purchase and sale of long-term assets and other business investments, within a specific reporting period.

b)

Activities that invest stuff

24.

financing activities

a)

transactions between a business and its lenders and owners to acquire or return resources

b)

Activities that finance stuff