Match Each Ratio That Follows to Its Use (Items A-H)

question 125

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-earnings per share (EPS) on common stock

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

---

Definitions:

Human Organs

Parts of the human body that perform vital functions necessary for life, such as the heart, liver, and kidneys, which can sometimes be medically transplanted.

Government Tax

A compulsory financial charge imposed by a government on individuals, businesses, or goods to fund public services and infrastructure.

Supply

A schedule or curve that shows the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.

Allocative Efficiency

A scenario in resource distribution where improving the situation of any single person is achievable only at the expense of another's wellbeing.