Match Each Definition That Follows with the Term (A-H) It

question 2

Multiple Choice

Match each definition that follows with the term (a-h) it defines.
-a company's ability to make interest payments and repay debt at maturity

• A)solvency
• B)leverage
• C)times interest earned
• D)horizontal analysis
• E)vertical analysis
• F)common-sized financial statements
• G)current position analysis
• H)profitability analysis

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Definitions:

Assets

Resources owned by a person or a company, regarded as having value and available to meet debts, commitments, or legacies.

Debt Securities

Securities that represent loans to a corporation.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental, that pays back interest over time.

Stocks

Financial instruments that represent ownership shares in a company, allowing investors to partake in the company's profits and governance.