Match Each of the Following Terms with the Appropriate Definitions

question 204

Short Answer

Match each of the following terms with the appropriate definitions.
A. Comparative financial statement
B. Horizontal analysis
C. Liquidity and efficiency
D. Vertical analysis
E. Financial statement analysis
F. Market prospects
G. Solvency
H. Debt to equity ratio
I. Profitability
J. Common-size financial statement
(1) A company's ability to generate positive market expectations.
________ (2) The application of analytical tools to general-purpose financial statements and related data for making business decisions.
________ (3) A measure of solvency presented as the ratio of total liabilities to total equity.
________ (4) A statement with data for two or more successive accounting periods placed in side-by-side columns, often with changes shown in dollar amounts and percentages.
________ (5) A company's ability to provide financial rewards sufficient to attract and retain capital.
(6)A statement where each amount is expressed as a percent of a base amount to reveal the relative importance of each financial statement item.
________ (7) The comparison of a company's financial condition and performance to a base amount.
(8) Examination of financial data across time.
________ (9) A company's ability to generate future revenues and meet long-term obligations.
________ (10) The availability of resources to meet short-term obligations and to efficiently generate revenues.

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Definitions:

Safety Needs

Basic human requirements including protection from elements, security, order, law, stability, and freedom from fear.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which must be fulfilled hierarchically.

Physiological Needs

The basic physical requirements for human survival, such as air, water, food, shelter, and sleep, which are the foundation of Maslow's hierarchy of needs.