Question

Match the following statements to the appropriate terms.

Price-earnings ratio select the appropriate term
Return on assets select the appropriate term
Accounts receivable turnover select the appropriate term
Earnings per share select the appropriate term
Payout ratio select the appropriate term
Working capital select the appropriate term
Current ratio select the appropriate term
Debt to assets ratio select the appropriate term
Free cash flow select the appropriate term Inventory turnover select the appropriate term

Answer 1

Matching Statements to Appropriate Terms:

Price-earnings ratio = Profitability Ratio

Return on Assets = Profitability Ratio

Accounts Receivable Turnover = Liquidity Ratio

Earnings per share = Profitability Ratio

Payout ratio = Profitability Ratio

Working capital = Liquidity Ratio

Current ratio = Liquidity Ratio

Debt to Assets = Solvency Ratio

Free Cash Flow = Solvency Ratio

Step-by-step explanation:

Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.

Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets. They include the working capital, the current ratio, and the acid-test ratio.

Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.