Knowledge Check

Select the term that best matches each definition.

Measure the ability of the company to survive over a long period of time.

Measure the income or operating success of a company for a given period of time.

Measure short$-$term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.

Comparisons covering two years for the same company.

Comparisons based on average ratios for particular industries.

Industry$-$average

Comparisons based on comparisons with a competitor in the same industry.