Matching
Match the ratios to their respective descriptive statements by placing the appropriate letter in the space provided
Premises:
Evaluates the attractiveness of an investment in a particular stock.
Indicates how effectively a company uses its economic resources.
Indicates how efficiently a company collects its receivables.
Evaluates a company's efficiency in controlling costs and expenses.
A severe test of a company's short-term debt-paying ability.
Indicates the percentage of assets contributed by creditors.
Indicates the rate of return on individual stock purchases.
Indicates a company's ability to cover its interest obligations.
Indicates a company's short-term liquidity.
Indicates the percentage of assets contributed by stockholders.
Responses:
Acid-test ratio
Current ratio
Debt ratio
Dividend yield
Equity ratio
Price/earnings ratio
Profit margin
Receivables turnover
Return on total assets
Times interest earned
Correct Answer:
Premises:
Responses:
Evaluates the attractiveness of an investment in a particular stock.
Indicates how effectively a company uses its economic resources.
Indicates how efficiently a company collects its receivables.
Evaluates a company's efficiency in controlling costs and expenses.
A severe test of a company's short-term debt-paying ability.
Indicates the percentage of assets contributed by creditors.
Indicates the rate of return on individual stock purchases.
Indicates a company's ability to cover its interest obligations.
Indicates a company's short-term liquidity.
Indicates the percentage of assets contributed by stockholders.
Premises:
Evaluates the attractiveness of an investment in a particular stock.
Indicates how effectively a company uses its economic resources.
Indicates how efficiently a company collects its receivables.
Evaluates a company's efficiency in controlling costs and expenses.
A severe test of a company's short-term debt-paying ability.
Indicates the percentage of assets contributed by creditors.
Indicates the rate of return on individual stock purchases.
Indicates a company's ability to cover its interest obligations.
Indicates a company's short-term liquidity.
Indicates the percentage of assets contributed by stockholders.
Responses:
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