Question

Match each ratlo that follows to its use items a-n). Items may be used more than once. Clear All dividends per share current ratio indicate the margin of safety to creditors quick ratio indicate instant debt-paying ability rate earned on common stockholders' equity indicate the ability to meet currently maturing obligations ratio of sales to assets assess the effectiveness in the use of assets rate earned on total assets indicate future earnings prospects earnings per share (EPS) on common stock assess the profitability of the assets working capital indicate the extent to which earnings are being distributed to common stockholders price-earnings (P/E) ratio assess the profitability of the investment by common stockholders ratio of liabilities to stockholders' equity

Answer 1

Dividends per share	Indicate the extent to which earnings are being distributed to common stockholders
Current ratio	Indicate ability to meet currently maturing obligations
Quick ratio	Indicate instant debt paying ability
Rate earned on common stakeholders equity	Assess the profitability of the investment by common stockholders
Ratio of sales to assets	Assess the effectiveness in the use assets
Rate earned on total assets	Assess profitability of the assets
Earning per share (EPS) on common stock	Assess the profitability of the investment by common stockholders
Working capital	Indicate ability to meet currently maturing obligations
Price earning (P/E) ratio	Indicate future earning prospects
Ratio of liabilities to stockholders equity	Indicate margin of safety to creditors