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Match Each Formula to the Correct Ratio

Question 8

Matching

Match each formula to the correct ratio

Premises:
(Cash + accounts receivable + marketable securities) / current liabilities
(Net income + interest expense) / average total assets
Current assets / current liabilities
Net income / average number of shares of common stock
Market price per share / earnings per share
Responses:
Price/earnings ratio
Quick ratio
Earnings per share
Current ratio
Return on assets
Return on equity
Inventory turnover

Correct Answer:

Price/earnings ratio
Quick ratio
Earnings per share
Current ratio
Return on assets
Return on equity
Inventory turnover
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