To see each answer, press or click on the blue "Unscramble" button. If you have difficulty answering the following questions, learn more about this topic by reading our Financial Ratios (Explanation).
2. Current assets divided by current liabilities is the __________ ratio.
CURRENT ERCRTNU3. Cost of goods sold divided by average inventory is the inventory ______________.
TURNOVER VOENRRTU4. Net ______ sales divided by accounts receivable is the receivables turnover ratio.
CREDIT ICRDTE5. Days sales in accounts receivable is 365 divided by the ____________ turnover ratio.
RECEIVABLES VELCEBRSIAE6. This is excluded from the current assets when calculating the quick ratio.
INVENTORY EYINNVROT8. _________ analysis results in all income statement amounts expressed as a percentage of net sales.
VERTICAL RAIVCLTE9. __________-size balance sheets show all amounts as a percentage of total assets.
COMMON MCOMON10. ____________ analysis results in amounts expressed as a percentage of an earlier, base year.
HORIZONTAL HALNOIRTZO11. The debt to equity ratio is the ratio of ____________ to stockholders' equity.
LIABILITIES LLIAITBSIIE12. When dividing income statement amounts by balance sheet amounts, it is logical to use an ___________ of the balance sheet amounts.
AVERAGE AAGEREV14. The current ratio and the quick ratio are indicators of a company's ___________.
LIQUIDITY ULDIQTIYI15. The profit margin ratio and the return on assets are indicators of a company's ____________.
PROFITABILITY LARTFIIBOTPYI16. A very large amount of debt in relation to the amount of assets indicates that a company is highly _______________.
LEVERAGED GARELDEVE17. Vertical analysis is associated with __________-size financial statements.
COMMON NOMOMC19. The receivables ______________ ratio is net credit sales divided by the average amount of accounts receivable.
TURNOVER RUEOTVRN20. Accountants calculate the inventory turnover ratio by dividing the ______ of goods sold by the average inventory.
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