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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education