Matching Questions
1.Match the correct ratio name from the list below labeledathroughgwith each formula appearing in items 1 through 5.
Ratios
a.Price/earnings ratio
b.Quick ratio
c.Earnings per share
d.Current ratio
e.Return on assets
f.Return on equity
g.Inventory turnover
____1.(Cash + accounts receivable + marketable securities) / current liabilities
____2.(Net income + interest expense) / average total assets
____3.Current assets / current liabilities
____4.Net income / average number of shares of common stock
____5.Market price per share / earnings per share
1.b2.e3.d4.c5.a
2.Match the correct ratio name from the list below labeledathroughfwith the ratio formulas appearing in items 1 through 4.
a.Debt/equity ratio
b.Financial leverage
c.Return on sales
d.Price/earnings ratio
e.Return on equity
f.Dividend yield ratio
____1.Market price per share / earnings per share
____2.Dividends per share / market price per share
____3.Average total liabilities / average total shareholders' equity
____4.Net income / average shareholders’ equity
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