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Match Each of the Appropriate Definition with the Correct Item

Question 196

Matching

Match each of the appropriate definition with the correct item.

Premises:
Ratios that measure the ability of a company to survive over a long period of time
An analytical technique in which each item on a financial statement is expressed as a percentage of a selected item on the financial statement
The market price per share of stock divided by the earnings per share of the stock
Total liabilities divided by total shareholders' equity
Net income divided by average common shareholders' equity
Dividends per share divided by the current market price per share
Ratios that measure the ability of a company to pay its debts and to meet unexpected needs for cash in the short run
Ratios that measure the income or operating success of a company for a given period of time
Ratios that measure whether or not the stock of a company is a good investment
Responses:
debt-to-equity ratio
profitability ratios
return on equity ratio
market indicator ratios
liquidity ratios
price/earnings ratio
vertical analysis
dividend yield ratio
solvency ratios

Correct Answer:

Ratios that measure the ability of a company to survive over a long period of time
An analytical technique in which each item on a financial statement is expressed as a percentage of a selected item on the financial statement
The market price per share of stock divided by the earnings per share of the stock
Total liabilities divided by total shareholders' equity
Net income divided by average common shareholders' equity
Dividends per share divided by the current market price per share
Ratios that measure the ability of a company to pay its debts and to meet unexpected needs for cash in the short run
Ratios that measure the income or operating success of a company for a given period of time
Ratios that measure whether or not the stock of a company is a good investment
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