Match each of the following terms with the phrase that best describes it.

Quality of earnings

Pro forma income

Current ratio

Discontinued operations

Horizontal analysis

Comprehensive income

1. A measure used to evaluate a company”s liquidity.

2. Usually excludes items that a company thinks are unusual or non-recurring.

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.