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:

Merchandising Company

Businesses that buy finished goods and sell them at a profit without modifying the product, focusing on distribution rather than production.

Sales Revenue

The income generated from the sale of goods or services before any costs or expenses are deducted.

Relevant Range

The scope of operations within which the assumptions regarding the behavior of variable and fixed costs hold true.

Cost Formula

An equation used to calculate the total cost of production that combines both fixed costs and variable costs.