Match the Ratios with Their Formulas by Entering the Appropriate

question 195

Multiple Choice

Match the ratios with their formulas by entering the appropriate letter in the space provided.
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Market price per share/Earnings per share

• 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:

Liability

The state of being responsible for something, especially by law, which can include financial or legal obligations.

General Partner

A full partner with unlimited liability for the debts of the partnership.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who invest but do not participate in management.

Partnership Interest

The share or portion of a partnership owned by one of the partners, including rights to its profits.