Match the following terms to their definitions: 1. Tells whether a company can pay all its current
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1. Tells whether a company can pay all its current liabilities if they become due immediately
2. Measures a company’s success in using assets to earn income
3. The practice of comparing a company with other companies that are similar
4. Indicates how rapidly inventory is sold
5. Shows the proportion of a company’s assets that is financed with debt
6. Tells the percentage of a stock’s market value that the company returns to stock-holders annually as dividends
7. Measures a business’s ability to pay interest on its debt
8. Measures a company’s ability to collect cash from credit customers
a. Inventory turnover
b. Interest coverage ratio
c. Quick ratio
d. Dividend yield
e. Return on assets
f. Accounts receivable turnover
g. Benchmarking
h. Debt ratio
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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