Consider the Formula Used to Calculate Each of the Following

question 71

Multiple Choice

Consider the formula used to calculate each of the following financial performance ratios.From the list of financial statement items below,match their letters with the ratio it is used to calculate.Some financial statement items will be used more than once. ___ Net Profit Margin
___ Debt-to-Assets Ratio
___ EPS
___ ROE
___ Capital Acquisitions Ratio
___ Inventory Turnover Ratio
___ Times interest earned Ratio

• A)Net Income
• B)Interest Paid
• C)Cost of Goods Sold
• D)Net Sales Revenue
• E)Net Cash Flows from Operating Activities
• F)Total Assets
• G)Average Shareholders' Equity
• H)Total Liabilities
• I)Average Shares Outstanding
• J)Cash paid for Property,Plant,and Equipment
• K)Average Inventory
• L)Income Tax Expense

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Definitions:

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, potentially distorting the model's estimations.

Standard Errors

The standard deviation of the sampling distribution of a statistic, measuring the accuracy with which a sample estimate represents the population parameter.

Parameter Estimates

Statistical values calculated from data that are used to represent certain characteristics of a population.

Level of Significance

A statistical measure that defines how strong the evidence must be to reject the null hypothesis in a hypothesis test.