Match the Ratio Computation with the Ratio

question 84

Essay

Match the ratio computation with the ratio. Ratio Computation
A. Pro?t ÷ Net sales revenue
B. Net credit sales ÷ Average net receivables
C. Return on equity - Return on assets
D. Sales revenue ÷ Total operating expenses
E. Total liabilities ÷ Shareholders' Equity
F. Market price per share ÷ EPS
G. Pro?t ÷ Average shareholders ' equity
H. Creditors' equity ÷ Total equities
I. Income tax expense ÷ Pretax income
J. Quick assets ÷ Current liabilities
K. Sales revenue ÷ Total assets
L. Dividends per share ÷ Market price per share
M. Shareholders' equity ÷ Total equities
N. Cost of goods sold ÷ Average inventory
O. (Income + After-tax interest expense) ÷ T otal assets
P. Current assets ÷ Current liabilities
Q. Pro?t ÷ Average number of shares of common share outstanding
R. (Cash + Cash equivalents) ÷ Current liabilities
S. Cash Flows from Operating Activities ÷ Pro?t
T. (Pro?t + Interest + Income Tax Expense) ÷ Interest Expense
U. Net Sales Revenue ÷ Net Fixed Assets
V. Cash Flows from Operating Activities (before interest and tax expense) ÷ Interest P aid
W. Not given above.Ratio Designation
____ 1. Return on equity
____ 2. Return on assets
____ 3. Financial leverage
____ 4.EPS
____ 5.Pro?t margin
____ 6.Current ratio
____ 7.Quick ratio
____ 8.Receivables turnover ratio
____ 9.Inventory turnover ratio
___ 10.Debt/equity ratio
___ 11.Owners' equity to total equities
___ 12.Creditors' equity to total equities
___ 13.Price/earnings ratio
___ 14.Dividend yield ratio
___ 15.Book value per common share
___ 16.Cash coverage ratio
___ 17.Cash ratio
___ 18.Quality of earnings
___ 19. Times interest earned
___ 20. Fixed asset turnover ratio

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Definitions:

Income Change

Income change refers to any variation, either an increase or decrease, in the amount of revenue or profit that an entity receives over a period.

Variable Costing

An approach to costing that accounts for only variable production expenses, including direct materials, direct labor, and variable manufacturing overhead, in the calculation of product costs.

Absorption Costing

A costing approach that consolidates every expense related to manufacturing - direct materials, direct labor, and both variable and fixed overheads - into the product’s price.

Variable Production Costs

Costs that change in proportion to the level of production activity, such as materials and labor directly involved in manufacturing.