Question : 145. Listed below seven terms listed in alphabetical order followed : 1255789

145. Listed below are seven terms listed in alphabetical order followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.

Terms:

a. Growth stocks  

b. Horizontal analysis

c. Liquidity  

d. Profitability ratios  

e. Solvency 

f. Value Stocks  

g. Vertical analysis

Phrases:

              _____  Analyzes trends in financial statement data for a single company over time.

              _____  Have lower share prices in relationship to their fundamental ratios and therefore trade at lower PE ratios.

              _____  Expresses each item in a financial statement as a percentage of the same base amount.

_____  Refers to a company’s ability to pay its current liabilities.

              _____  Refers to a company’s ability to pay its long-term liabilities.

_____  Have high expectations of future earnings and therefore usually trade at higher P/E ratios.

_____  Measure the earnings or operating effectiveness of a company.

146. Listed below are five terms listed in alphabetical order followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.

Terms:

a. Aggressive accounting practices 

b. Conservative accounting practices  

c. Discontinued operation  

d. Extraordinary item  

e. Quality of earnings  

Phrases:

              _____ An event that is (1) unusual in nature and (2) infrequent in occurrence.

              _____ The sale or disposal of a significant component of a company’s operations.

              _____ Refers to the ability of reported earnings to reflect the company’s true earnings, as well as the usefulness of reported earnings to predict future earnings.

              _____ Practices that result in reporting lower income, lower assets, and higher liabilities.

_____ Practices that result in reporting higher income, higher assets, and lower liabilities.

147. Listed below are eight terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.

Terms:

a. Vertical analysis

b. Horizontal analysis

c. Liquidity

d. Solvency

e. Discontinued operation  

f. Extraordinary item  

g. Aggressive accounting practices 

h. Conservative accounting practices  

Phrases:

_____  A company’s ability to pay its current liabilities.

_____  Accounting choices that result in reporting lower income, lower assets, and higher liabilities.

_____  A profit or loss unusual in nature and infrequent in occurrence. 

_____  Accounting choices that result in reporting higher income, higher assets, and lower liabilities.

_____  A tool to analyze trends in financial statement data for a single company over time.

_____  The sale or disposal of a significant component of a company’s operations.

_____  A means to express each item in a financial statement as a percentage of a base amount.

_____  A company’s ability to pay its long-term liabilities.