Definitional problems: Listed are 11 terms that relate to ratio analysis:1. Book value per share2.Inventoryturnover3. Debt-to-equity ratio4. Average collection period5. Average sales period6. Return on common equity7. Earnings per share8. Price/earnings ratio9. Return on total assets10. Current ratio11. Accounts-receivable turnoverChoose the financial ratio or term from the list that most appropriately completes each of the following statements:1. The__________ tends to have an effect on the market price per share asreflected in the price/earnings ratio.2. The__________ indicates whether a stock is relatively cheap or relativelyexpensive in relation to current earnings. 3. The________ measures the amount that would be distributed to holders of common stock if all assets were sold at their balance-sheet carrying amount and if all creditors were paid off.4. The_____________ is a rough measure of how many times a company'saccounts receivable have been turned into cash during the year.5. The____________ is a measure of the amount of assets being provided bycreditors for each dollar of assets being provided by the stockholders.6. The_________ measures how well management has employed its assets.
Definitional problems: Listed are 11 terms that relate to ratio analysis:
1. Book value per share
2.Inventoryturnover
3. Debt-to-equity ratio
4. Average collection period
5. Average sales period
6. Return on common equity
7. Earnings per share
8. Price/earnings ratio
9. Return on total assets
10.
11. Accounts-receivable turnover
Choose the financial ratio or term from the list that most appropriately completes each of the following statements:
1. The__________ tends to have an effect on the market price per share as
reflected in the price/earnings ratio.
2. The__________ indicates whether a stock is relatively cheap or relatively
expensive in relation to current earnings. 3. The________ measures the amount that would be distributed to holders of common stock if all assets were sold at their balance-sheet carrying amount and if all creditors were paid off.
4. The_____________ is a rough measure of how many times a company's
accounts receivable have been turned into cash during the year.
5. The____________ is a measure of the amount of assets being provided by
creditors for each dollar of assets being provided by the stockholders.
6. The_________ measures how well management has employed its assets.
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