Select the Term from the List Provided That Bests Matches

question 12

Essay

Select the term from the list provided that bests matches each of the following descriptions or definitions: $\begin{array}{|l|l|l|}\hline \text { Your Answer } & \text { Definition or Description } &\text { Term } \\\hline& \text { A. An indication of the relative importance of an item of financial information } &\text { 1. Absolute amounts } \\\hline& \text { B. Analysis techisque that conmares amotuts of the same item over two or more time periods } &\text { 2. Book value per share } \\\hline& \text { C. Meastres of the lomg-tern debt payang ability of the firm } &\text { 3. Current ratio } \\\hline& \text { D. Measure of profitability calculated by dividurg net income by average total stockholders' equity } &\text { 4. Horizontal analysis } \\\hline& \text { E. Dollar amounts of individual items on financial statements can be misleading becanse they make no reference to the size of the company } &\text { 5. Liquidity ratios } \\\hline& \text { F. Measurements of a firms ability to generateincome } &\text { 6. Materiality } \\\hline& \text { G. Stukly of the performance of ratios or other financial measures over time } &\text { 7. Average days to sell inventory } \\\hline& \text { H. Cuntent assets divided by current labilities } &\text { 8. Price-eamings ratio } \\\hline& \text {I. Measures of short-tem debt paying ability } &\text { 9. Profitability ratios } \\\hline& \text {J. Meastue to compare vahes of different stocks. calculated by dividang market price per share by amount of income per share } &\text { 10. Return on equity } \\\hline& \text { K. Another way at looking at inwertory tumover by conwerting the izwentory tumnover ratio into a munber of days } &\text {11. Solvency ratios } \\\hline& \text { L. Calculated by dividing total stockholders' equity less preferred rights by the number of common shares outstanding } &\text { 12. Trend analysis } \\\hline\end{array}$

---

Definitions:

Research Methods

The techniques and procedures used to conduct scientific studies to gather and analyze data.

Surveys

A research method for collecting data from a predefined group of respondents to gain information and insights on various topics of interest through questions.

Experiments

Scientifically controlled tests or investigations carried out to determine the effect of varying one or more variables on a specific outcome.

Causality

The relationship between cause and effect, where one event (the cause) is understood to directly result in another event (the effect).