Match the following terms to their definitions: a. Inventory turnover b. Return on sales c. Quick ratio

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Match the following terms to their definitions:

a. Inventory turnover

b. Return on sales

c. Quick ratio

d. Dividend yield

e. Return on assets

f. Accounts receivable turnover

g. Benchmarking

h. Debt ratio

...... 1. Tells whether a company can pay all its current liabilities if they become due immediately

...... 2. Measures a company’s success in using assets to earn income

...... 3. The practice of comparing a company with other companies that are leaders

...... 4. Indicates how rapidly inventory is sold

...... 5. Shows the proportion of a company’s assets that is financed with debt

...... 6. Tells the percentage of a share’s market value that the company returns to shareholders annually as dividends

...... 7. A measure of profitability

...... 8. Measures a company’s ability to collect cash from credit customers

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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