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).
|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|
Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.
We now offer six Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Cash Flow Statement, Working Capital and Liquidity, and Payroll Accounting. Click here to learn more.