5.) For each definition, list the “ratio category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping. a) Determines a company’s ability to pay off short term obligations or debts as they come due.________________________ b) Relates company’s internal performance to the external judgment of the marketplace in terms of what it is worth.________________________ c) Identifies percentage of earnings paid out to shareholders and what is reinvested for internal growth.________________________ d) Speed at which company turns over its inventory, receivables and long-term assets.________________________ e) How a company is financed between debt [lenders] and equity [owners].________________________ f) Measures return on sales, assets and total capital.________________________

ratio analysis is performed by the company so as to know the performance and no the financial health…

category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping. a) Determines a company’s ability to pay off short term obligations or debts as they come due. ________________________ b)

category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping. a) Determines a company’s ability to pay off short term obligations or debts as they come due. ________________________ b)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 4PB: Each of the following situations relates to a different company. A. For each of these independent...

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Question

5.) For each definition, list the “ratio category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping.

a) Determines a company’s ability to pay off short term obligations or debts as they come due.

________________________

b) Relates company’s internal performance to the external judgment of the marketplace in terms of what it is worth.

________________________

c) Identifies percentage of earnings paid out to shareholders and what is reinvested for internal growth.

________________________

d) Speed at which company turns over its inventory, receivables and long-term assets.

________________________

e) How a company is financed between debt [lenders] and equity [owners].

________________________

f) Measures return on sales, assets and total capital.

________________________

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