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.