Short Answer
Match the term and the definition.Not all definitions will be used.
_____ Ratio analysis
_____ Reliability
_____ Liquidity
_____ Historical cost principle
_____ Going-concern problem
_____ Profitability
_____ Consistency
_____ Solvency
_____ Trend analysis
_____ Revenue recognition principle
A.The ability of a company to meet its short-run financial obligations.
B.The difficulties a company faces in acquiring financing when first starting up.
C.The principle that companies need to adjust their accounts for inflation.
D.Also known as time-series analysis.
E.The characteristic of financial reporting that requires a company to use the same principles over time to measure financial data.
F.The principle that companies should record transactions at the cash-equivalent cost on the date of the transaction.
G.The principle that revenues should be recognized immediately upon payment.
H.The characteristic that financial results should be able to be independently verified.
I.A measure of current earnings performance.
J.An analysis that compares a company's results to other companies in the industry.
K.A measure of long-run survivability.
L.The principle that revenue should be recorded when earned,provided payment is reasonably expected.
M.Measures that relate one financial variable to another from the same financial statement.
N.The constraint that financial data needs to be similar to other firms in the industry.
O.The characteristic that financial information needs to be valuable to decision makers.
P.When a company's near-term financial survival is questionable.
Correct Answer:

Verified
Correct Answer:
Verified
Q35: Calculate the company's days to collect ratio
Q37: Which of the following measures would assist
Q38: Trend data can be measured in dollar
Q41: Use the financial information below to
Q42: Calculate the price to earnings ratio for
Q44: The time period assumption is also known
Q45: Nonrecurring items such as discontinued operations and
Q47: Which of the following are the constraints
Q101: If an analyst wants to examine a
Q103: If an analyst wanted to examine a