Match each term with the correct statement below.
a. operating activities
b. investing activities
c. financing activities
d. current ratio
e. quick ratio
f. return-on-sales ratio
g. return-on-equity ratio
h. debt-to-equity ratio
1. A liquidity ratio that is also called the acid-test ratio
2. Activities identified on the statement of cash flows that include issuing new stock and paying dividends
3. A financial ratio that measures the firms ability to pay its long-term debts
4. A financial ratio that shows the strength of a company’s working capital
5. A financial ratio that measures the return the company earns on every dollar of investment
6. Activities identified on the statement of cash flows that indicate cash flow from the firm’s primary revenue-generating activities
1. E) quick ratio
2. C) financing activities
3. H) debt-to-equity ratio
4. D) current ratio
5. G) return-on-equity ratio
6. A) operating activities
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