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Match Each of the Appropriate Definitions with Terms

Question 105

Matching

Match each of the appropriate definitions with terms.

Premises:
The comparison of a company's financial condition and performance to a base amount.
Examination of financial data across time.
A company's ability to generate positive market expectations.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A company's ability to generate future revenues and meet long-term obligations.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
A statement with data for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
The availability of resources to meet short-term obligations and to efficiently generate revenues.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A measure of solvency presented as the ratio of total liabilities to total equity.
Responses:
Liquidity and efficiency
Debt to equity ratio
Horizontal analysis
Vertical analysis
Financial statement analysis
Common-size financial statement
Comparative financial statement
Profitability
Market prospects
Solvency

Correct Answer:

The comparison of a company's financial condition and performance to a base amount.
Examination of financial data across time.
A company's ability to generate positive market expectations.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A company's ability to generate future revenues and meet long-term obligations.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
A statement with data for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
The availability of resources to meet short-term obligations and to efficiently generate revenues.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A measure of solvency presented as the ratio of total liabilities to total equity.
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