Match the Classifications of Ratios with Each Description

question 133

Multiple Choice

Match the classifications of ratios with each description.
-Measures the degree of protection provided to company creditors

• A)Liquidity Ratio
• B)Leverage Ratio
• C)Profitability Ratio
• D)Horizontal Analysis
• E)Trend Analysis

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Definitions:

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Signature Card

A document that a bank keeps on file with the signatures of all the authorized signatories for an account.

Bank Checking Account

A bank account that allows for numerous withdrawals and deposits, often used for daily transactions.

Pre-Printed Checks

Checks printed by the bank or another provider with the payer’s account information before the payer fills in the details of the payee, amount, and signature.