Match the Term with Its Definition

question 24

Essay

Match the term with its definition.
a.Balance sheet
b.Debt
c.Dividend
d.Financial leverage
e.Mortgage
f.Owners' equity
g.Retained earnings
h.Working capital cycle
-The process of converting inventory to cash

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing current assets to current liabilities.

Current Ratio

A liquidity ratio calculated as current assets divided by current liabilities, indicating the ability of a company to pay short-term obligations.

Current Liabilities

Debts or obligations that a company expects to pay off within one fiscal year, including accounts payable, short-term loans, and accrued expenses.

Current Assets

Assets that a company expects to convert into cash, sell, or use up within one year or within its operating cycle if longer than a year.