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

question 109

Multiple Choice

Match each definition that follows with the term (a-h) it defines.
-focuses on a company's ability to generate net income

• 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:

Retained Earnings

Retained earnings are the portion of a company's net income that is kept within the company instead of being paid out to shareholders as dividends, used for reinvestment.

Prerequisites

Requirements that must be met or completed before taking on a subsequent task or enrolling in a particular course or program.

Declaration Date

The specific date on which a company announces the payment of a dividend, detailing the amount to be paid and to whom it will be distributed.

Board of Directors

A group of individuals elected by shareholders to oversee the management and governance of a corporation.