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Select the Term from the List Provided That Best Matches

Question 171

Matching

Select the term from the list provided that best matches each of the following descriptions or definitions:

Premises:

Responses:

Another term for the current ratio

Accounts receivable turnover

Calculated by dividing dividends per share by the market price per share

Acid-test ratio

Presentation of too much information may serve to confuse users of the information

Dividend yield

Measure of efficiency in using, assets, calculated as net sales divided by total assets

Earnings per share

Measure of immediate debt paying ability

Information overload

A profitability measure, net income divided by net sales

Inventory turnover

Measures the profitability of a company's asset base, also known as return on assets

Net margin

Analysis technique that compares an item from the financial statements with a key amount from the same year's financial statements

Average days to collect receivables

Measurement of volume of sales in relation to inventory levels

Return on investment

Net income available for common stock divided by average number of outstanding shares

Asset turnover

Current assets minus current liabilities

Vertical analysis

Ratio that measures how quickly a company collects its accounts receivable, calculated by dividing net sales by average net receivables

Working capital

Calculated by dividing 365 by the accounts receivable turnover ratio

Working capital ratio

Premises:

Another term for the current ratio

Calculated by dividing dividends per share by the market price per share

Presentation of too much information may serve to confuse users of the information

Measure of efficiency in using, assets, calculated as net sales divided by total assets

Measure of immediate debt paying ability

A profitability measure, net income divided by net sales

Measures the profitability of a company's asset base, also known as return on assets

Analysis technique that compares an item from the financial statements with a key amount from the same year's financial statements

Measurement of volume of sales in relation to inventory levels

Net income available for common stock divided by average number of outstanding shares

Current assets minus current liabilities

Ratio that measures how quickly a company collects its accounts receivable, calculated by dividing net sales by average net receivables

Calculated by dividing 365 by the accounts receivable turnover ratio

Responses:

Accounts receivable turnover

Acid-test ratio

Dividend yield

Earnings per share

Information overload

Inventory turnover

Net margin

Average days to collect receivables

Return on investment

Asset turnover

Vertical analysis

Working capital

Working capital ratio

Correct Answer:

Premises:

Responses:

Another term for the current ratio

Calculated by dividing dividends per share by the market price per share

Presentation of too much information may serve to confuse users of the information

Measure of efficiency in using, assets, calculated as net sales divided by total assets

Measure of immediate debt paying ability

A profitability measure, net income divided by net sales

Measures the profitability of a company's asset base, also known as return on assets

Analysis technique that compares an item from the financial statements with a key amount from the same year's financial statements

Measurement of volume of sales in relation to inventory levels

Net income available for common stock divided by average number of outstanding shares

Current assets minus current liabilities

Ratio that measures how quickly a company collects its accounts receivable, calculated by dividing net sales by average net receivables

Calculated by dividing 365 by the accounts receivable turnover ratio