Match the Terms with the Definitions

question 18

Multiple Choice

Match the terms with the definitions.
-The proportion of debt to stockholders' equity.

• A)profitability measures
• B)operating income ratio
• C)cost of goods sold ratio
• D)ratio of liabilities to stockholders' equity
• E)return on total assets
• F)ratio of net sales to assets
• G)horizontal analysis
• H)leverage
• I)net income ratio
• J)liquidity
• K)liquidity measures
• L)merchandise inventory turnover

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Definitions:

International Conversion Rate

The international conversion rate is the exchange rate at which one currency can be converted into another for international transactions.

Currency Rate

The value of one currency expressed in terms of another currency; also known as the exchange rate.

Investee Company

A company in which an investor holds a minority stake, without controlling interest or influence.

Controlling Interest

An ownership interest in a company that gives the holder a majority of voting rights, often allowing for control over the company’s policies and decisions.