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Match the Following Definitions with the Appropriate Terms

Question 185

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Match the following definitions with the appropriate terms

Premises:
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.
Examination of financial data across time
The availability of resources to meet short-term obligations and to efficiently generate revenues.
The comparison of a company's financial condition and performance to a base amount.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A company's ability to generate positive market expectations.
A company's ability to cover long-term obligations.
The portion of total assets provided by equity, computed as total equity divided by total assets.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
Responses:
Solvency
Comparative financial statement
Equity ratio
Common-size financial statement
Vertical analysis
Market prospects
Horizontal analysis
Liquidity and efficiency
Profitability
Financial statement analysis

Correct Answer:

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.
Examination of financial data across time
The availability of resources to meet short-term obligations and to efficiently generate revenues.
The comparison of a company's financial condition and performance to a base amount.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A company's ability to generate positive market expectations.
A company's ability to cover long-term obligations.
The portion of total assets provided by equity, computed as total equity divided by total assets.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
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