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If you have difficulty answering the following questions, learn more about this topic by reading our Financial Ratios (Explanation).
1. Current assets minus current liabilities is _________ capital. | WORKING GRNOKWI | Unscramble |
2. Current assets divided by current liabilities is the __________ ratio. | CURRENT RTUCENR | Unscramble |
3. Cost of goods sold divided by average inventory is the inventory ______________. | TURNOVER RRETNVOU | Unscramble |
4. Net ______ sales divided by accounts receivable is the receivables turnover ratio. | CREDIT RDEICT | Unscramble |
5. Days' sales in accounts receivable is 365 divided by the ____________ turnover ratio. | RECEIVABLES BESVEELARIC | Unscramble |
6. This is excluded from the current assets when calculating the quick ratio. | INVENTORY TRNEYOVNI | Unscramble |
7. Another name for the quick ratio is the ______ test ratio. | ACID CADI | Unscramble |
8. _________ analysis results in all income statement amounts expressed as a percentage of net sales. | VERTICAL TREILAVC | Unscramble |
9. __________-size balance sheets show all amounts as a percentage of total assets. | COMMON OMCNOM | Unscramble |
10. ____________ analysis results in amounts expressed as a percentage of an earlier, base year. | HORIZONTAL LAOOTHINZR | Unscramble |
11. The debt to equity ratio is the ratio of ____________ to stockholders' equity. | LIABILITIES BIISTEIIALL | Unscramble |
12. When dividing income statement amounts by balance sheet amounts, it is logical to use an ___________ of the balance sheet amounts. | AVERAGE GEVRAAE | Unscramble |
13. Financial ratios are part of financial statement ___________. | ANALYSIS SNIYASLA | Unscramble |
14. The current ratio and the quick ratio are indicators of a company's ___________. | LIQUIDITY IIUDYTIQL | Unscramble |
15. The profit margin ratio and the return on assets are indicators of a company's ____________. | PROFITABILITY IYITATLORIBPF | Unscramble |
16. A very large amount of debt in relation to the amount of assets indicates that a company is highly _______________. | LEVERAGED DEAGREEVL | Unscramble |
17. Vertical analysis is associated with __________-size financial statements. | COMMON OOCMMN | Unscramble |
18. Horizontal analysis is associated with _______ analysis. | TREND DERTN | Unscramble |
19. The receivables ______________ ratio is net credit sales divided by the average amount of accounts receivable. | TURNOVER NVUORERT | Unscramble |
20. Accountants calculate the inventory turnover ratio by dividing the ______ of goods sold by the average inventory. | COST SOCT | Unscramble |
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