Match the Terms Below with the Correct Definitions

question 52

Multiple Choice

Match the terms below with the correct definitions.
-Once-a-year accounting entries recorded on the first day of the fiscal period

• A)Property and equipment
• B)Reversing entries
• C)Gross profit
• D)Current ratio
• E)Working capital
• F)Net income or net loss
• G)Net sales
• H)Income from operations
• I)Long-term liabilities
• J)Liquidity

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Definitions:

Equity Multiplier

A financial ratio indicating the portion of a company’s assets that are financed by stockholder's equity.

Debt-to-equity Ratio

An indicator of the distribution between shareholders' equity and borrowed funds in financing a company's assets.

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses with its before-interest earnings.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each sales dollar that is gross profit.