Match the Terms with the Definitions

question 74

Multiple Choice

Match the terms with the definitions.
-The ratio of net income available to common stockholders for the year to the average common stockholders' equity during the year.

• 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

---

Definitions:

Nominal Rate of Interest

The rate of interest before adjustments for inflation.

Inflation Rate

The speed at which the overall price level for goods and services increases, leading to a decline in buying power.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Bracket Creep

A phenomenon where inflation pushes income into higher tax brackets, increasing taxation without an actual increase in real purchasing power.