Choose a term from COLUMN B that matches the description in COLUMN A. COLUMN A COLUMN B 1.1 Ability of the business to pay off all its A gearing debts 1.2 Investors Ability of the business to pay off its 1.3 solvency short-term debts 1.4 D liquidity The benefit that shareholders receive 1.5 for investing in the company E return on equity The extent to which a company is financed by loans User of financial statements and ratios

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...
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Choose a term from COLUMN B that matches the description in COLUMN A.
COLUMN A
COLUMN B
1.1
Ability of the business to pay off all its
A
gearing
debts
1.2
B
Investors
Ability of the business to pay off its
1.3
solvency
short-term debts
1.4
D
liquidity
The benefit that shareholders receive
1.5
for investing in the company
return on equity
The extent to which a company is
financed by loans
User of financial statements and ratios
1.
2.
3.
4.
5.
Transcribed Image Text:Choose a term from COLUMN B that matches the description in COLUMN A. COLUMN A COLUMN B 1.1 Ability of the business to pay off all its A gearing debts 1.2 B Investors Ability of the business to pay off its 1.3 solvency short-term debts 1.4 D liquidity The benefit that shareholders receive 1.5 for investing in the company return on equity The extent to which a company is financed by loans User of financial statements and ratios 1. 2. 3. 4. 5.
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