Match the Terms with the Definitions

question 40

Multiple Choice

Match the terms with the definitions.
-The excess of a company's current assets over current liabilities.

• A)accounts receivable turnover
• B)book value per share
• C)working capital
• D)current ratio (working capital ratio)
• E)earnings per share
• F)gross profit ratio
• G)vertical analysis
• H)times interest earned ratio
• I)leverage measures
• J)return on common stockholders' equity
• K)quick ratio (acid-test ratio)
• L)profitability
• M)operating expense ratio

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Definitions:

ROE

Short for Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Money Center Banks

Large financial institutions that offer a wide range of financial services, located in major financial centers and dealing with high volumes of currency transactions.

Industry Structure

The organizational composition and competitive dynamics of an industry, including the number and size of companies, entry barriers, and the extent of rivalry.

Threat of Entry

In business, it refers to the potential for new competitors to enter a market and disrupt existing players, impacting profitability.