Match the Terms with the Definitions

question 91

Multiple Choice

Match the terms with the definitions.
-The ability to earn a satisfactory return on the investments in the business.

• 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:

Flexible Budget

A budget that adjusts to changes in activity or production levels, allowing for more accurate budgeting.

Actual Results

The actual outcomes or figures achieved by a business, contrasting with forecasts or budgeted amounts.

Revenue Variance

The difference between the actual revenue for the period and how much the revenue should have been, given the actual level of activity. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.

Sales Revenue

The income received from selling goods or services over a period of time.