Description List of terms

A$.$ An indication of the relative importance of an item of financial information

B$.$ Analysis technique that compares amounts of the same item over two or more time periods

C$.$ Measures of the long$-$term debt paying ability of the firm

D$.$ Measure of profitability calculated by dividing net income by average total stockholders' equity

E$.$ Dollar amounts of individual items on financial statements can be misleading because they make no reference to the size of the company

F$.$ Measurements of a firms ability to generate income

G$.$ Study of the performance of ratios or other financial measures over time

H$.$ Current assets divided by current liabilities

I. Measures of short$-$term debt paying ability

J$.$ Measure to compare values of different stocks, calculated by dividing market price per share by amount of earnings per share

K$.$ Another way at looking at inventory turnover by converting the inventory turnover ratio into a number of days

L$.$ Calculated by dividing total stockholders' equity less preferred rights by the number of common shares outstanding

Absolute amounts

Average days to sell inventory

Book value per share

Current ratio

Horizontal $($trend$)$ analysis

Liquidity ratios

Materiality

Price$-$earning ratio

Profitability ratios

Return on equity

Solvency ratios

Trend analysis Select the term from the list provided that best matches each of the following descriptions or definitions: