Match the following terms to the appropriate statement by placing the letter to the left of each statement.
| a. | Common-size analysis | f. | Price earnings ratio |
| b. | Earnings per share | g. | Quick ratio |
| c. | Financial leverage | h. | Return on assets |
| d. | Horizontal analysis | i. | Vertical analysis |
| e. | Liquidity | j. | Working capital |
| ______ | 1 | .Analyzing financial statements by looking at the changes in the account |
balance
| ______ | 2 | .A firm's ability to pay its obligations as they come due and to meet any |
| | unforeseen needs for cash |
| ______ | 3 | .The difference between a firm's current assets and its current liabilities |
| ______ | 4 | .A liquidity ratio that is a more stringent of liquidity than the current ratio |
| ______ | 5 | .Another term for common-size analysis |
| ______ | 6 | .Measures how well assets have been employed in conducting the business |
| ______ | 7 | .The use of borrowed capital to finance a business or project |
| ______ | 8 | .Represents how much of a company's current net income could be distributed |
| | for each share of stock held by an investor |
| ______ | 9 | .Examination of changes in the relative size of account balances within |
| ______ | 10. | Indicates what multiple of current earnings investors are willing to pay for |
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