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Match the Following with the Items Below

Question 127

Matching

Match the following with the items below:

Premises:
A system that includes inventory into cost of goods sold in which the items purchased first are written off first.
A system of including inventory into cost of goods sold in which the items purchased last are written off first.
A group of ratios that indicate to what extent a firm has borrowed funds and how prudently these funds are being managed.
analysis of performance over a number of years that is made to ascertain significant
Costs incurred if the present asset base were repurchased at current prices.
Ratios that measure the firm's ability to pay off short-term obligations as they come due.
A result of an inflationary economy in which old stocks of goods are sold at large
Ratios that measure the speed at which the firm is turning over its assets.
Measures the firm's ability to meet all fixed obligations.
The ratios that measure return on sales, assets and invested capital of the firm.
A method of study that breaks down return on assets between the profit margin and asset turnover.
Indicates the strength of the firm regarding its coverage of interest payments.
A phantom source of profit that can mislead even the most alert analysts.
Responses:
DuPont System of ratio analysis
profitability ratios
debt utilization ratios
FIFO
inflation
times interest earned
trend analysis
LIFO
fixed charge coverage
inventory profits
replacement costs
asset utilization ratios
liquidity ratios

Correct Answer:

A system that includes inventory into cost of goods sold in which the items purchased first are written off first.
A system of including inventory into cost of goods sold in which the items purchased last are written off first.
A group of ratios that indicate to what extent a firm has borrowed funds and how prudently these funds are being managed.
analysis of performance over a number of years that is made to ascertain significant
Costs incurred if the present asset base were repurchased at current prices.
Ratios that measure the firm's ability to pay off short-term obligations as they come due.
A result of an inflationary economy in which old stocks of goods are sold at large
Ratios that measure the speed at which the firm is turning over its assets.
Measures the firm's ability to meet all fixed obligations.
The ratios that measure return on sales, assets and invested capital of the firm.
A method of study that breaks down return on assets between the profit margin and asset turnover.
Indicates the strength of the firm regarding its coverage of interest payments.
A phantom source of profit that can mislead even the most alert analysts.
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