Matching
Match the following with the items below:
Premises:
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 patterns.
A phantom source of profit that can mislead even the most alert analysts.
A result of an inflationary economy in which old stocks of goods are sold at large profits.
Ratios that measure the firm's ability to pay off short-term obligations as they come due.
Indicates the strength of the firm regarding its coverage of interest payments.
The ratios that measure return on sales, assets, and invested capital of the firm.
A system of including inventory into cost of goods sold in which the items purchased last are written off first.
A system that converts inventory into cost of goods sold by writing off the items purchased earliest sooner.
Costs incurred if the present asset base were repurchased at current prices.
Ratios that measure the speed at which the firm is turning over its assets.
A method of study that breaks down return on assets between the profit margin and asset turnover and compels the analyst to look into the sources of profitability.
Measures the firm's ability to meet all fixed obligations.
Responses:
inflation
fixed charge coverage
trend analysis
times interest earned
FIFO
debt utilization ratios
inventory profits
LIFO
liquidity ratios
asset utilization ratios
Du Pont System of ratio analysis
profitability ratios
replacement costs
Correct Answer:
Premises:
Responses:
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 patterns.
A phantom source of profit that can mislead even the most alert analysts.
A result of an inflationary economy in which old stocks of goods are sold at large profits.
Ratios that measure the firm's ability to pay off short-term obligations as they come due.
Indicates the strength of the firm regarding its coverage of interest payments.
The ratios that measure return on sales, assets, and invested capital of the firm.
A system of including inventory into cost of goods sold in which the items purchased last are written off first.
A system that converts inventory into cost of goods sold by writing off the items purchased earliest sooner.
Costs incurred if the present asset base were repurchased at current prices.
Ratios that measure the speed at which the firm is turning over its assets.
A method of study that breaks down return on assets between the profit margin and asset turnover and compels the analyst to look into the sources of profitability.
Measures the firm's ability to meet all fixed obligations.
Premises:
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 patterns.
A phantom source of profit that can mislead even the most alert analysts.
A result of an inflationary economy in which old stocks of goods are sold at large profits.
Ratios that measure the firm's ability to pay off short-term obligations as they come due.
Indicates the strength of the firm regarding its coverage of interest payments.
The ratios that measure return on sales, assets, and invested capital of the firm.
A system of including inventory into cost of goods sold in which the items purchased last are written off first.
A system that converts inventory into cost of goods sold by writing off the items purchased earliest sooner.
Costs incurred if the present asset base were repurchased at current prices.
Ratios that measure the speed at which the firm is turning over its assets.
A method of study that breaks down return on assets between the profit margin and asset turnover and compels the analyst to look into the sources of profitability.
Measures the firm's ability to meet all fixed obligations.
Responses:
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