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Match Each of the Following Terms with the Appropriate Definitions

Question 235

Matching

Match each of the following terms with the appropriate definitions.

Premises:
A company's ability to generate future revenues and meet long-term obligations.
A company's ability to generate positive market expectations.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
Examination of financial data across time.
A measure of solvency presented as the ratio of total liabilities to total equity.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A statement with amounts for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
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.
Responses:
Liquidity and efficiency
Market prospects
Profitability
Common-size financial statement
Vertical analysis
Solvency
Debt to equity ratio
Financial statement analysis
Comparative financial statement
Horizontal analysis

Correct Answer:

A company's ability to generate future revenues and meet long-term obligations.
A company's ability to generate positive market expectations.
A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
Examination of financial data across time.
A measure of solvency presented as the ratio of total liabilities to total equity.
The application of analytical tools to general-purpose financial statements and related data for making business decisions.
A company's ability to provide financial rewards sufficient to attract and retain capital.
A statement with amounts for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
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.
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