Solved

Match Each of the Following Terms with the Appropriate Definitions

Question 184

Question 184

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Vertical analysis

A company's ability to cover long-term obligations.

Common-size financial statement

Examination of financial data across time.

Financial statement analysis

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 percents.

Solvency

A company's ability to generate positive market expectations.

Horizontal analysis

A company's ability to provide financial rewards sufficient to attract and retain capital.

Equity ratio

The application of analytical tools to general-purpose financial statements and related data for making business decisions.

Comparative financial statement

The availability of resources to meet short-term obligations and to efficiently generate revenues.

Liquidity and efficiency

A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.

Profitability

The portion of total assets provided by equity, computed as total equity divided by total assets.

Market prospects

The comparison of a company's financial condition and performance to a base amount.

Premises:

Vertical analysis

Common-size financial statement

Financial statement analysis

Solvency

Horizontal analysis

Equity ratio

Comparative financial statement

Liquidity and efficiency

Profitability

Market prospects

Responses:

A company's ability to cover long-term obligations.

Examination of financial data across time.

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 percents.

A company's ability to generate positive market expectations.

A company's ability to provide financial rewards sufficient to attract and retain capital.

The application of analytical tools to general-purpose financial statements and related data for making business decisions.

The availability of resources to meet short-term obligations and to efficiently generate revenues.

A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.

The portion of total assets provided by equity, computed as total equity divided by total assets.

The comparison of a company's financial condition and performance to a base amount.

Correct Answer:

Premises:

Responses:

Vertical analysis

Common-size financial statement

Financial statement analysis

Solvency

Horizontal analysis

Equity ratio

Comparative financial statement

Liquidity and efficiency

Profitability

Market prospects

Related Questions

Q166: _ are reports where financial amounts are

Q176: A company has an inventory turnover ratio

Q177: A company has a current ratio of

Q185: Match each of the following terms with

Q201: The comparison of a company's financial condition

Q221: _ is a method of analysis used

Q226: The gross margin ratio, return on total

Q230: _ ratios include the price-earnings ratio and

Q232: The current ratio and acid-test ratio are

Q233: The debt ratio, the equity ratio, pledged

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents