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Match the Term and the Explanation

Question 86

Short Answer

Match the term and the explanation.More explanations are provided than terms.
_____ Net profit margin.
_____ Contracting role.
_____ Asset turnover ratio.
_____ Cross-sectional analysis.
_____ Relevant data.
_____ Governance role.
A.When creditors use a company's financial data to manage financial agreements with the company.
B.Terms of lending agreement that lays out the terms and conditions under which the lender could renegotiate or force repayment.
C.Sales revenue divided by average total assets.
D.Net income divided by average total assets.
E.Total assets divided by total liabilities.
F.When directors use financial data to oversee the management of a company.
G.Numbers adjusted to reflect financial results had certain events not occurred.
H.Refers to a company filing reports with the Securities Commission on current events affecting the company.
I.Compares a company's performance to its competitors in same time period.
J.Net income divided by sales revenue.
K.Financial data that affects decision making.
L.When advisors use financial data to recommend buying or selling stocks.
M.Amortization divided by average total assets.

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