Select the Ratio That Each Statement Below Most Properly Satisfies

question 124

Multiple Choice

Select the ratio that each statement below most properly satisfies.
-A measure of the degree of protection afforded creditors in case of insolvency

• A)Dividend yield ratio
• B)Current ratio
• C)Debt ratio
• D)Return on common stockholders' equity ratio
• E)Times-interest-earned ratio
• F)Quick ratio
• G)Debt-to-equity ratio
• H)Dividend payout ratio
• I)Price-earnings ratio

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Definitions:

General Journal

A primary accounting record used to record all types of transactions except for those related to specific tasks, such as sales or purchases, which have their own journals.

General Ledger Control Account

A General Ledger Control Account is a summary account that consolidates the total balances of all accounts in a subsidiary ledger, used to maintain integrity in financial reporting.

Subsidiary Ledger

A detailed ledger that contains the individual accounts with a common characteristic, supporting entries recorded in a general ledger.

Accounting Period

The span of time at the end of which a company's financial statements are prepared, typically a quarter or year.