Match the Ratio Computation with the Ratio

question 117

Short Answer

Match the ratio computation with the ratio.
Ratio Computation
A. Profit ÷ Net sales revenue
B. Net credit sales ÷ Average net receivables
C. Return on equity - Return on assets
D. Sales revenue ÷ Total operating expenses
E. Total liabilities ÷ Shareholders' Equity
F. Market price per share ÷ EPS
G. Profit ÷ Average shareholders' equity
H. Creditors' equity ÷ Total equities
I. Income tax expense ÷ Pretax income
J. Quick assets ÷ Current liabilities
K. Sales revenue ÷ Total assets
L. Dividends per share ÷ Market price per share
M. Shareholders' equity ÷ Total equities
N. Cost of goods sold ÷ Average inventory
O. (Income + After-tax interest expense) ÷ Total assets
P. Current assets ÷ Current liabilities
Q. Profit ÷ Average number of shares of common share outstanding
R. (Cash + Cash equivalents) ÷ Current liabilities
S. Cash Flows from Operating Activities ÷ Profit
T. (Profit + Interest + Income Tax Expense) ÷ Interest Expense
U. Net Sales Revenue ÷ Net Fixed Assets
V. Cash Flows from Operating Activities (before interest and tax expense) ÷ Interest Paid
W. Not given above.
Ratio Designation
____ 1. Return on equity
____ 2. Return on assets
____ 3. Financial leverage
____ 4. EPS
____ 5. Profit margin
6. Current ratio
7. Quick ratio
8. Receivables turnover ratio
____ 9. Inventory turnover ratio
___ 10. Debt/equity ratio
___ 11. Owners' equity to total equities
12. Creditors' equity to total equities
___ 13. Price/earnings ratio
___ 14. Dividend yield ratio
___ 15. Book value per common share
___ 16. Cash coverage ratio
_ 17. Cash ratio
_ 18. Quality of earnings
19. Times interest earned
___ 20. Fixed asset turnover ratio

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