Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 44

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.

a. Return on investment (ROI)	m. Number of days’ sales in accounts receivable
b. DuPont model	n. Earnings per share
c. Margin	o. Price/earnings (P/E) ratio
d. Turnover	p. Earnings multiple
e. Return on equity (ROE)	q. Dividend yield
f. Working capital	r. Dividend payout ratio
g. Current ratio	s. Regular dividend
h. Acid-test ratio	t. Extra dividend
i. Debt ratio	u. Preferred dividend coverage ratio
j. Leverage ratios	v. Debt/equity ratio
k. Times interest earned ratio	w. Book value per share
l. Common size statement

_____A financial statement in which amounts are expressed in percentage terms.