Match the terms with the definitions.
-Reporting the amount of each item in a statement as a percentage of some designated total.
A)accounts receivable turnover
B)book value per share
C)working capital
D)current ratio (working capital ratio)
E)earnings per share
F)gross profit ratio
G)vertical analysis
H)times interest earned ratio
I)leverage measures
J)return on common stockholders' equity
K)quick ratio (acid-test ratio)
L)profitability
M)operating expense ratio

Question

Quizplus · Accepted Answer

Vertical analysis involves reporting each item in a financial statement as a percentage of a base amount, such as total sales or total assets, to facilitate comparison.

Match the Terms with the Definitions