Match each of the following terms with the phrase that it best matches.
| a. Quality of earnings | d. Pro forma income |
| b. Current ratio | e. Discontinued operations |
| c. Horizontal analysis | f. Comprehensive income |
1. A measure used to evaluate a company’s liquidity
2. Usually excludes items that a company thinks are unusual or nonrecurring.
3. Indicates the level of full and transparent information provided to users of the financial statements.
4. The disposal of a significant segment of a business.
5. Determines increases or decreases in a series of financial statement data.
6. Includes all changes in stockholders’ equity during a period except those resulting from investments by stockholders and distributions to stockholders.
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