Matching Quiz

Match the following terms to its definitions.


1				Horizontal or trend analysis


2				Trend percentages


3				Common-size statement


4				Vertical analysis


5				Gross margin percentage


6				Earnings per share


7				Dividend payout ratio


8				Dividend yield ratio


9				Return on total assets


10				Return on common shareholders' equity


11				Financial leverage


12				Book value per share


13				Current ratio


14				Acid-test (quick) ratio


15				Accounts receivable turnover


16				Average collection period


17				Inventory turnover ratio


18				Average sale period


19				Times interest earned ratio


20				Debt-to-equity ratio

Answer choices for questions 1 through 20

A)	A measure of the return generated by the assets employed.
B)	Income available to common shareholders divided by the book value of average common shareholders' equity.
C)	The amount that would be distributed to holders of common shares if all assets were sold at their balance sheet carrying amounts and if all creditors were paid off.
D)	A measure of how many times a company's credit sales have been turned into cash during the year.
E)	Net income available for common shareholders divided by the average number of common shares outstanding during the year.
F)	A measure of how many times a company's inventory has been sold and replaced during the year.
G)	The presentation of a company's financial statements in common-size format.
H)	A year-to-year comparison of two or more years' financial statement items in dollar and percentage terms.
I)	A measure of the number of days taken to sell the entire inventory one time.
J)	The ratio of the current dividends per share to the current market price per share.
K)	A measure of profitability calculated by dividing the gross margin by sales.
L)	A measure of a company's ability to make interest payments.
M)	Current assets (less inventories and prepaid expenses) divided by current liabilities. This is a more stringent test of a company's ability to meet its short-term obligations.
N)	Current assets divided by current liabilities.
O)	The average number of days taken to collect an account receivable.
P)	The effects on profitability that arise when the rate of return on total assets differs from the rate paid to the company's creditors. Financial leverage effects can be positive or negative.
Q)	The ratio of total assets being provided by creditors through debt to those being provided by shareholders.
R)	The expression of several years' financial data as a percentage of a base year.
S)	A statement that shows all items in both percentage and dollar terms.
T)	A ratio showing the percentage of earnings being paid out in dividends.

Your Results:

E-mail Your Results