Match Each Definition That Follows with the Term (A-H) It

question 151

Multiple Choice

Match each definition that follows with the term (a-h) it defines.
-Measures the risk that interest payments will not be made if earnings decrease

• A)Solvency
• B)Leverage
• C)Times interest earned
• D)Horizontal analysis
• E)Vertical analysis
• F)Common-sized financial statements
• G)Current position analysis
• H)Profitability analysis

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Definitions:

Deposit Recorded

The process of logging cash or checks received into the accounting records of a business or financial institution.

Outstanding Checks

Checks that have been written and recorded in the issuing company’s ledger but have not yet been cashed or cleared by the bank.

Journal Entry

A record of a financial transaction in accounting, detailing the accounts affected and the amounts.

Bank Service Charge

Fees charged by a bank to cover services provided to the account holder.