Match each of the following terms with the phrase that it best matches.
Quality of earnings ... Pro forma income
Current ratio .... Discontinued operations
Horizontal analysis .. Comprehensive income
1. _________ A measure used to evaluate a company’s liquidity.
2. _________ Usually excludes items that a company thinks are unusual or nonrecurring.
3. _________ Indicates the level of full and transparent information provided to users of the financial statements.
4. _________ The disposal of a significant segment of a business.
5. _________ Determines increases or decreases in a series of financial statement data.
6. _________ Includes all changes in stockholders’ equity during a period except those resulting from investments by stockholders and distributions to stockholders.