Match the following financial statement ratios with their definition. 1. Working capital _____ 2. Current ratio _______ 3. Profit margin ______ 4. Return on assets______ 5. Debt to equity ratio________ 6. Return on equity_______ 7. Asset turnover_________ a. A measure of profitability that shows the proportion of a company's assets that is financed by creditors and the proportion financed by

Question

owners b. A measure of liquidity that shows the net current assets on hand to continue business operations c. A measure of profitability that relates the amount earned by a business to the stockholders' investment in the business d. A measure of profitability that shows the percentage of each sales dollar that results in net income e. A measure of liquidity; current assets divided by current liabilities f. A measure of profitability that shows how efficiently a company uses its assets to produce income g. A measure of how efficiently assets are used to produce sales
Fill in the blank(s) with correct word

Answer 1

1. b
2. e
3. d
4. f
5. a
6. c
7. g