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.
