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Match the Ratios to Their Respective Descriptive Statements by Placing

Question 94

Matching

Match the ratios to their respective descriptive statements by placing the appropriate letter in the space provided

Premises:
Evaluates the attractiveness of an investment in a particular stock.
Indicates how effectively a company uses its economic resources.
Indicates how efficiently a company collects its receivables.
Evaluates a company's efficiency in controlling costs and expenses.
A severe test of a company's short-term debt-paying ability.
Indicates the percentage of assets contributed by creditors.
Indicates the rate of return on individual stock purchases.
Indicates a company's ability to cover its interest obligations.
Indicates a company's short-term liquidity.
Indicates the percentage of assets contributed by stockholders.
Responses:
Acid-test ratio
Current ratio
Debt ratio
Dividend yield
Equity ratio
Price/earnings ratio
Profit margin
Receivables turnover
Return on total assets
Times interest earned

Correct Answer:

Evaluates the attractiveness of an investment in a particular stock.
Indicates how effectively a company uses its economic resources.
Indicates how efficiently a company collects its receivables.
Evaluates a company's efficiency in controlling costs and expenses.
A severe test of a company's short-term debt-paying ability.
Indicates the percentage of assets contributed by creditors.
Indicates the rate of return on individual stock purchases.
Indicates a company's ability to cover its interest obligations.
Indicates a company's short-term liquidity.
Indicates the percentage of assets contributed by stockholders.
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