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

question 178

Multiple Choice

Match each definition that follows with the term (a-h) it defines.
-An analysis of a company's ability to pay its current liabilities

• 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:

Revenue

The total income generated by a company from its usual business activities, usually from the sale of goods and services to customers.

Spending Variance

A financial metric that indicates the difference between the budgeted or planned amount of spending and the actual amount spent.

Flexible Budget

A budget that is adaptable and varies according to the changes in activity level or volume.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of taxes and interest.