Question
QUESTION 4 (14 MARKS) Listed below are eight technical accounting terms introduced in this chapter: Current Ratio Return on asset Price-earnings ratio Quick Ratio Market
QUESTION 4 (14 MARKS) Listed below are eight technical accounting terms introduced in this chapter:
Current Ratio | Return on asset | Price-earnings ratio |
Quick Ratio | Market Share | Earnings per share |
Debt Ratio | Working Capital |
4. Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms.
____ (a) The percentage of total assets financed by creditors.
____ (b) A measure of the effectiveness with which management utilizes a company's resources, regardless of how those resources are financed.
____ (c) A company's percentage share of total dollar sales within its industry.
____ (d) Current assets less current liabilities.
____ (e) A measure reflecting investors' expectations of future profitability.
____ (f) A measure of short-term solvency often used when a company has large inventories that cannot be quickly converted into cash.
____ (g) A ratio that helps individual stockholders relate the net income of a large corporation to their equity investment
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