Match the terms with the definitions.
-Measures that indicate a company's ability to earn income by operating efficiently. They focus primarily on the relationship between key income statement and balance sheet amounts.
A)profitability measures
B)operating income ratio
C)cost of goods sold ratio
D)ratio of liabilities to stockholders' equity
E)return on total assets
F)ratio of net sales to assets
G)horizontal analysis
H)leverage
I)net income ratio
J)liquidity
K)liquidity measures
L)merchandise inventory turnover

Question

Quizplus · Accepted Answer

Profitability measures are financial metrics used to assess a company's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity over time. They focus on the relationship between key income statement and balance sheet amounts.

Match the Terms with the Definitions