Chapter 17-Financial Statement Analysis Any “off-balance-sheet" arrangements such as leases not included directly on the financial 951 statements. PTS: KEY: Bloom's: Knowledge DIF: Moderate OBJ: LO: 17-04 NAT: BUSPROG: Analytic MATCHING Match each ratio to its use. Items may be used more than oncer To assess the profitability of the assets. b. a. To assess the effectiveness in the use of assets. c. To indicate the ability to meet currently maturing obligations. d. To indicate the margin of safety to creditors. To indicate instant debt-paying ability. e. f. To assess the profitability of the investment by common stockholders. To indicate future earnings prospects. g. h. To indicate the extent to which earnings are being distributed to common stockholders. 1. Price-Earnings (P/E) Ratio Working Capital 2. Rate Earned on Total Assets 3. Ratio of Liabilities to Stockholders' Equity 4. 5. Quick Ratio Rate Earned on Common Stockholders' Equity 6. 7. Current Ratio Ratio of Net Sales to Assets 8. Dividends per Share 9. OBJ: LO: 17-03 DIF: Moderate VEY. Bloom's: Knowledge 10. Earnings per Share (EPS) on Common Stock

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chapter 17-Financial Statement Analysis
Any “off-balance-sheet" arrangements such as leases not included directly on the financial
951
statements.
PTS:
KEY: Bloom's: Knowledge
DIF: Moderate
OBJ:
LO: 17-04
NAT: BUSPROG: Analytic
MATCHING
Match each ratio to its use. Items may be used more than oncer
To assess the profitability of the assets.
b.
a.
To assess the effectiveness in the use of assets.
c.
To indicate the ability to meet currently maturing obligations.
d. To indicate the margin of safety to creditors.
To indicate instant debt-paying ability.
e.
f.
To assess the profitability of the investment by common stockholders.
To indicate future earnings prospects.
g.
h. To indicate the extent to which earnings are being distributed to common stockholders.
1.
Price-Earnings (P/E) Ratio
Working Capital
2.
Rate Earned on Total Assets
3.
Ratio of Liabilities to Stockholders' Equity
4.
5. Quick Ratio
Rate Earned on Common Stockholders' Equity
6.
7. Current Ratio
Ratio of Net Sales to Assets
8.
Dividends per Share
9.
OBJ: LO: 17-03
DIF: Moderate
VEY. Bloom's: Knowledge
10. Earnings per Share (EPS) on Common Stock
Transcribed Image Text:Chapter 17-Financial Statement Analysis Any “off-balance-sheet" arrangements such as leases not included directly on the financial 951 statements. PTS: KEY: Bloom's: Knowledge DIF: Moderate OBJ: LO: 17-04 NAT: BUSPROG: Analytic MATCHING Match each ratio to its use. Items may be used more than oncer To assess the profitability of the assets. b. a. To assess the effectiveness in the use of assets. c. To indicate the ability to meet currently maturing obligations. d. To indicate the margin of safety to creditors. To indicate instant debt-paying ability. e. f. To assess the profitability of the investment by common stockholders. To indicate future earnings prospects. g. h. To indicate the extent to which earnings are being distributed to common stockholders. 1. Price-Earnings (P/E) Ratio Working Capital 2. Rate Earned on Total Assets 3. Ratio of Liabilities to Stockholders' Equity 4. 5. Quick Ratio Rate Earned on Common Stockholders' Equity 6. 7. Current Ratio Ratio of Net Sales to Assets 8. Dividends per Share 9. OBJ: LO: 17-03 DIF: Moderate VEY. Bloom's: Knowledge 10. Earnings per Share (EPS) on Common Stock
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