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

question 21

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-Price-earnings
(P/E) ratio

• 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:

Cognitive Processes

The mental actions or operations involved in acquiring knowledge and understanding through thought, experience, and the senses.

Categorization Task

Involves grouping items into categories based on shared characteristics or features, facilitating organization and recognition of similar objects or concepts.

Greenfield

A refers to Patricia Greenfield, a psychologist known for her work on cultural effects on cognitive development.

Wolof Children

Refers to young individuals from the Wolof ethnic group, primarily found in Senegal, Gambia, and Mauritania, often studied in cross-cultural research on language and development.