Match the Following Financial Statement Ratios with Their Definition

question 135

Essay

Match the following financial statement ratios with their definition.
1. Working capital _____
2. Current ratio _______
3. Profit margin ______
4. Return on assets______
5. Debt to equity ratio________
6. Return on equity_______
7. Asset turnover_________
a. A measure of profitability that shows the proportion of a company's assets that is financed by creditors and the proportion financed by owners
b. A measure of liquidity that shows the net current assets on hand to continue business operations
c. A measure of profitability that relates the amount earned by a business to the owner's investment in the business
d. A measure of profitability that shows the percentage of each sales dollar that results in net income
e. A measure of liquidity; current assets divided by current liabilities

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Definitions:

Microsoft

A multinational corporation that specializes in the development, manufacturing, licensing, support, and sales of computer software, consumer electronics, and personal computers and services.

Antitrust Policy

Regulations and laws that encourage competition by limiting monopolies, preventing mergers that would restrict competition, and other business practices that would reduce consumer welfare.

Tacit Collusion

An unspoken, informal agreement among competitors to limit competition and keep prices high.

Standard Oil

An American oil producing, transporting, refining, and marketing company established by John D. Rockefeller and partners in the 19th century, which became a highly influential and controversial monopoly.