Match the items below by entering the appropriate code letter in the space provided. А. Relevance G. Working capital Liquidity ratios I. В. Н. Current ratio Comparability Consistency Earnings per share Solvency ratios Economic entity С. D. J. Е. Intangible assets К. ntio

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
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Q3:
Match the items below by entering the appropriate code letter in the
space provided.
A.
Relevance
G.
Working capital
В.
С.
Liquidity ratios
I.
Н.
Current ratio
Comparability
Consistency
Intangible assets
Earnings per share
Solvency ratios
Economic entity
D.
J.
Е.
К.
assumption
F.
Free cash flow
L.
Materiality
1.
Measures of the ability of the company to survive
over a long period of time.
2.
Current assets divided by current liabilities.
3.
Information that has a bearing on a decision.
Economic events
4.
can
be identified with a
particular unit of accountability.
5.
An item important enough to influence the
decision of an investor or creditor.
6.
Same accounting principles and methods used
from year to year within a company.
7.
Cash
from operating activities less capital
expenditures and cash dividends.
8.
Noncurrent assets that do not have physical
substance.
9.
(Net income
preferred stock dividends) divided
-
by average common shares outstanding.
10.
Different companies using the same accounting
principles.
11.
Measures of the short-term ability of the
enterprise to pay its maturing obligations.
12.
The
excess
of current assets
over
current
liabilities.
Transcribed Image Text:Q3: Match the items below by entering the appropriate code letter in the space provided. A. Relevance G. Working capital В. С. Liquidity ratios I. Н. Current ratio Comparability Consistency Intangible assets Earnings per share Solvency ratios Economic entity D. J. Е. К. assumption F. Free cash flow L. Materiality 1. Measures of the ability of the company to survive over a long period of time. 2. Current assets divided by current liabilities. 3. Information that has a bearing on a decision. Economic events 4. can be identified with a particular unit of accountability. 5. An item important enough to influence the decision of an investor or creditor. 6. Same accounting principles and methods used from year to year within a company. 7. Cash from operating activities less capital expenditures and cash dividends. 8. Noncurrent assets that do not have physical substance. 9. (Net income preferred stock dividends) divided - by average common shares outstanding. 10. Different companies using the same accounting principles. 11. Measures of the short-term ability of the enterprise to pay its maturing obligations. 12. The excess of current assets over current liabilities.
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