# Question: The following is a list of terms and definitions associated

The following is a list of terms and definitions associated with financial statement analysis tools:

1. Horizontal analysis

2. Current ratio

3. Vertical analysis

4. Quick ratio

5. Profit margin

6. Inventory turnover ratio

7. Return on equity

8. Price to earnings ratio

9. Capital structure

10. Dividend payout ratio

a. A comparison of net income to sales that measures a company's ability to generate profits

b. A liquidity ratio that compares cash and near cash assets to current liabilities

c. The mix of debt and equity that a company uses to generate its assets

d. Compares the income of a company in terms of earnings per share with the price of one share of stock

e. A technique that calculates both the dollar and percentage change in account balances from one term to the next

f. A measure of how many times a company is able to sell its inventory balance in a period

g. A technique that compares account balances within one year

h. A measure of the percentage of earnings that a company pays out as dividends

i. A ratio comparing a company's current liabilities to current assets

j. A comparison of net income to the average balance in stockholders' equity during the year

Required

Match each term with the appropriate definition.

1. Horizontal analysis

2. Current ratio

3. Vertical analysis

4. Quick ratio

5. Profit margin

6. Inventory turnover ratio

7. Return on equity

8. Price to earnings ratio

9. Capital structure

10. Dividend payout ratio

a. A comparison of net income to sales that measures a company's ability to generate profits

b. A liquidity ratio that compares cash and near cash assets to current liabilities

c. The mix of debt and equity that a company uses to generate its assets

d. Compares the income of a company in terms of earnings per share with the price of one share of stock

e. A technique that calculates both the dollar and percentage change in account balances from one term to the next

f. A measure of how many times a company is able to sell its inventory balance in a period

g. A technique that compares account balances within one year

h. A measure of the percentage of earnings that a company pays out as dividends

i. A ratio comparing a company's current liabilities to current assets

j. A comparison of net income to the average balance in stockholders' equity during the year

Required

Match each term with the appropriate definition.

## Relevant Questions

Multiple Choice Questions 1. Which of the following is not included in the definition of accounting? a. Identifying economic information b. Measuring economic information c. Developing economic information d. Communicating ...Consider the following information: Required Use the accounting equation to fill in the missing amounts. The following is a list of terms and definitions associated with financial statement analysis tools: 1. Return on assets 2. Debt to equity ratio 3. Earnings per share 4. Times interest earned 5. Financial leverage 6. ...Access the 2010 annual report of American Eagle Outfitters by clicking on the About AEO Inc., AE Investment Info, and Historical Annual Reports links at www.ae.com. Also, access the 2010 annual report of Gap Inc. by clicking ...In 2012, Ralph's Rug Outlet generated net sales of $1,250,000 and cost of goods sold of $723,000. Ralph's average inventory of rugs during the year was $95,300. Required Calculate Ralph's inventory turnover ratio for the ...Post your question