Match the Terms with the Definitions

question 5

Multiple Choice

Match the terms with the definitions.
-The ratio of net sales on account to the average amount of net accounts receivable.

• 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:

Specific Performance

A legal remedy whereby a court orders the party who breached a contract to perform the promised action rather than merely compensating the other party with money.

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, where the court enforces a contractual obligation on parties who have not agreed to enter into a contract.

Rescission

The legal act of voiding a contract and returning all involved parties to their pre-contractual positions, often due to misrepresentation, fraud, or error.

Compensatory

Referring to a form of damages awarded to a plaintiff in a lawsuit to compensate for lost items, damage, or injury.