Match the ratio to the building block of financial statement analysis to which it best relates A Liquidity and efficiency B Solvency C Profitability D Market prospects 1 Gross margin ratio 2 Acid test ratio 3 Equity ratio 4 Return on total assets 5 Dividend yield 6 Book value per common share 7 Day...

Match the ratio to the building block of financial statement analysis to which it best relates. A.

Question:

Match the ratio to the building block of financial statement analysis to which it best relates.
A. Liquidity and efficiency
B. C. Profitability
D. Market prospects
1. _______ Gross margin ratio
2. _______ Acid-test ratio
3. _______ Equity ratio
4. _______ Return on total assets
5. _______ yield
6. _______ Book value per common share
7. _______ Days’ sales in inventory
8. _______ turnover
9. _______ Debt-to-equity
10. _______ Times interest earned

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... 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...