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Match the Following Ratios with the Descriptions Below

Question 66

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Match the following ratios with the descriptions below.

Premises:
Describes how quickly accounts receivables are collected.
Measures the performance of the firm's stockholders
Measures the performance of the firm's assets.
Describe how much of each sale is profit.
A common size measure of the operating performance of the firm.
Measures the ability of the firm to service its long-term debt.
Describes the percentage of net income that is returned to stockholders.
Describes investors' expectation of a firm's future earnings.
Measures the short-term liquidity of the firm
Measures how quickly a firm pays it current liabilities.
Responses:
Price earnings ratio
Dividend payout ratio
Return on sales
Return on equity
Earnings per share
Return on assets
Times interest earned
Accounts receivable turnover
Days in payment period
Current ratio

Correct Answer:

Describes how quickly accounts receivables are collected.
Measures the performance of the firm's stockholders
Measures the performance of the firm's assets.
Describe how much of each sale is profit.
A common size measure of the operating performance of the firm.
Measures the ability of the firm to service its long-term debt.
Describes the percentage of net income that is returned to stockholders.
Describes investors' expectation of a firm's future earnings.
Measures the short-term liquidity of the firm
Measures how quickly a firm pays it current liabilities.
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