Solved

Match Each of the Appropriate Definition with the Correct Item

Question 273

Matching

Match each of the appropriate definition with the correct item.

Premises:
Ratios that measure whether or not the stock of a company is a good investment
An analytical technique in which each item on a financial statement is expressed as a percentage of a selected item on that financial statement
Events that are both unusual and infrequent
Operations that a company has eliminated, usually by selling a segment or division
A technique used to evaluate a series of financial statement data over a period of time
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 ability of a company to survive over a long period of time
Ratios that measure the income or operating success of a company for a given period of time
Responses:
vertical analysis
horizontal analysis
liquidity ratios
discontinued operations
market indicator ratios
solvency ratios
profitability ratios
extraordinary items

Correct Answer:

Ratios that measure whether or not the stock of a company is a good investment
An analytical technique in which each item on a financial statement is expressed as a percentage of a selected item on that financial statement
Events that are both unusual and infrequent
Operations that a company has eliminated, usually by selling a segment or division
A technique used to evaluate a series of financial statement data over a period of time
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 ability of a company to survive over a long period of time
Ratios that measure the income or operating success of a company for a given period of time
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