Choose the Appropriate Letter Match Each Financial Performance Ratios with the Appropriate

question 127

Essay

Choose the appropriate letter match each financial performance ratios with the appropriate category.
Ratio
1.___ Debt-to-assets ratio
2.___ Receivables turnover ratio
3.___ Fixed asset turnover ratio
4.___ Current ratio
5.___ Return on equity
6.___ Price earnings ratio
7.___ Times interest earned ratio
8.___ Quick ratio
9.___ Inventory turnover ratio
10.___ Earnings per share
Category
P - Profitability
L - Liquidity
S - Solvency

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Definitions:

Cash Dividends

Dividends paid in the form of cash to a company's shareholders from its current or accumulated earnings.

Additional Paid-In Capital

The amount of money that shareholders have paid in excess of the par value of the shares, representing a source of non-debt based capital for the company.

Goodwill

A non-physical asset created when acquiring a business at a cost higher than the fair value of its identifiable net assets.

Equity Method

An accounting technique used by companies to assess earnings generated by their investments in other companies, incorporating these earnings as part of their income.