Match the Ratios with Their Formulas by Entering the Appropriate

question 12

Multiple Choice

Match the ratios with their formulas by entering the appropriate letter in the space provided.
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Net sales/Average total assets

• A)Current ratio
• B)Price-earnings ratio
• C)Profit margin
• D)Asset turnover
• E)Earnings per share
• F)Times interest earned
• G)Inventory turnover
• H)Average collection period
• I)Days in inventory
• J)Payout ratio

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Definitions:

Information Tax Return

A type of tax document used to report various types of income, other than wages, salaries, and tips, to governmental tax agencies.

Accounting Entity

An economic unit with clearly defined boundaries for which financial transactions are recorded, separate from its owners or other business units.

Capital Credit

Refers to the allocation or distribution of a cooperative's net income back to its members based on their proportionate contribution or usage, often in the utility or service sector.

Partners' Capital Statement

A financial document that shows the changes in the equity of each partner in the business over a period of time.