FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Match each definition that follows with the term (a–h) it defines.
 

Question 7 options:

 
a company's ability to make interest payments and repay debt at maturity
 
focuses on a company’s ability to generate net income
 
useful for comparing one company to another or to industry averages
 
use debt to increase the return on an investment
 
measures the risk that interest payments will not be made if earnings decrease
 
the percentage analysis of the relationship of each component in a financial statement to a total within the statement
 
a percentage analysis of increases and decreases in related items on comparative financial statements
 
an analysis of a company’s ability to pay its current liabilities
 
1.
solvency
2.
leverage
3.
times interest earned
4.
horizontal analysis
5.
vertical analysis
6.
common-sized financial statements
7.
current position analysis
8.
profitability analysis
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