Match Each Ratio That Follows to Its Use (Items A-H)

question 137

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-dividends per share

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Negotiable Document

A written instrument that promises payment to the holder and is freely transferable.

Identified

Recognized or distinguished as being a particular entity or object.

Tendered

The act of presenting for acceptance; in legal and financial contexts, it often refers to offering payment or delivering goods as part of fulfilling a contract.

Liable

Liable refers to being legally responsible to someone else for damages or losses.