Select the term from the list provided that best matches each of the following descriptions or definitions: Another term for the current ratio Definition or Description 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 average total assets Measures of immediate debt paying ability A profitability measure, net income divided by net sales Measures the profitability of a company's assets 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 Indicates the number of times, on average, that inventory is totally replaced during the year. 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 credit sales by average net receivables Calculated by dividing 365 by the accounts receivable turnover ratio Term

Select the term from the list provided that best matches each of the following descriptions or definitions: Another term for the current ratio Definition or Description 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 average total assets Measures of immediate debt paying ability A profitability measure, net income divided by net sales Measures the profitability of a company's assets 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 Indicates the number of times, on average, that inventory is totally replaced during the year. 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 credit sales by average net receivables Calculated by dividing 365 by the accounts receivable turnover ratio Term

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 27MCQ

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Similar questions

Ratios: Which of the following ratios is not considered to be a test of profitability? Long-Term Debt to Total Capital Earnings Per Share Return On Assets Net Profit Margin
Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b. Gross profit percentage.c. Current ratio.d. Return on equity
Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
Which of the following ratios is not considered to be a test of profitability? Group of answer choices A)Current ratio. B)Net profit margin. C)Return on assets. D)Earnings per share. e)None of the above
Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio b. Gross profit margin c. Return on Assets d. Operating profit margin
How do i figure out these questions?
Comment on the following statements with suitable example: i. The ratio return on assets has net income in the numerator and total assets in the denominator. Explain how each part of the ratio could cause return on assets to fall. ii. Explain how return on assets could decline, given an increase in net profit margin. iii. If quoted market prices are not available, a personal financial statement cannot be prepared. Comment.
explain the impact on financial statement using FIFO, weighted avverage and LIFO. When would the three methods give similar profit figures? when would they give indentical profit figure?
Which of the following is an appropriate computation for return on investment? a. Sales divided by total assets b. Net income divided by total assets c. Net income divided by sales d. Sales divided by stockholders' equity would b be the right answer?
Which of the following would not be used as a summary performance measure when using market multiples to determine value? Stock price Net operating assets Net operating profit after tax Book value
Question Content Area The percentage analysis of increases and decreases in individual items on comparative financial statements is called a.profitability analysis b.horizontal analysis c.solvency analysis d.vertical analysis
Define each of the following terms: a. Liquid asset b. Liquidity ratios: current ratio; quick ratio c. Asset management ratios: inventory turnover ratio d. Debt management ratios: total debt to total capital; times-interest-earned (TIE) ratio e. Profitability ratios: profit margin; return on total assets (ROA); return on common equity (ROE); return on invested capital (ROIC); basic earning power (BEP) ratio f. Market value ratios: price/earnings (P/E) ratio; market/book (M/B) ratio; enterprise value/EBITDA ratio