Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.

273,590
Subscribers

Working Capital and Liquidity (Word Scramble)

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 Working Capital and Liquidity (Explanation).

1. Working capital is calculated using this category or classification of assets and liabilities. CURRENT UTRCNRE Unscramble
2. The word pertaining to a company’s ability to pay its obligations when due. LIQUIDITY IDTUIYQIL Unscramble
3. An asset is classified as current if it is expected to turn to cash within one year or within the operating _________, whichever is longer. CYCLE YECCL Unscramble
4. The total amount of current assets divided by the total amount of current liabilities is the current ___________. RATIO IRTOA Unscramble
5. A retailer's current asset that is not included in the calculation of its quick ratio. INVENTORY YETIVONRN Unscramble
6. Another name for the acid test ratio is the _________ ratio. QUICK IQKUC Unscramble
7. The cost of goods sold is more logical than using sales when computing a company's ______ sales in inventory. DAYS YDSA Unscramble
8. A company's average ____________ period is calculated by dividing 360 or 365 days by its receivable turnover ratio. COLLECTION LTNCLOOICE Unscramble
9. A company's cost of goods sold divided by its average inventory is its inventory _____________ ratio. TURNOVER VENTORUR Unscramble
10. When a company's balance sheet reports account receivable – net, it means that the amount is after a deduction for an _____________ amount of uncollectible or doubtful accounts. ESTIMATED IDEEMTTSA Unscramble
11. A company's _______ of accounts receivable sorts the customers’ open balances according to the date when the money should be collected. AGING GGAIN Unscramble
12. The calculation of the inventory turnover ratio is more accurate when the amount of inventory is the ____________ amount during the entire year. AVERAGE EGVAAER Unscramble
13. A company’s operating cycle is the total of the days' sales in inventory and the days' sales in accounts _______________. RECEIVABLE AERLEVIBEC Unscramble
14. Accounts receivable and accounts payable will appear on the balance sheet of a corporation using this accounting method (or basis) of accounting. ACCRUAL UCLACRA Unscramble
15. Company A purchased goods on account (on credit) from Company B. Until the amount is paid, Company B has what type of claim against Company A? UNSECURED SDCERNUUE Unscramble
16. The changes in most of the working capital accounts will appear on the statement of cash flows in the section entitled cash flows from ______________ activities. OPERATING REGNTPIOA Unscramble
17. If inventory increases during the accounting period, the amount of the change will appear on the statement of cash flows in _________________ . PARENTHESES HNEEEPSRAST Unscramble
18. A company had net credit sales of $440,000 in the past year. During the year it had an average accounts receivable balance of $40,000. Its receivables turnover ratio was ______________ times. ELEVEN LVNEEE Unscramble
19. Companies that purchase other companies' accounts receivable. FACTORS STRAFOC Unscramble
20. The operating cash flow ratio is calculated by dividing a company's net cash provided by operating activities by the average amount of current ______________. LIABILITIES LSLATIIIIBE 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.

Certificate of Achievement

Certificates of Achievement

We now offer three Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, and Financial Statements. Click here to learn more.

PRO Testimonial
"AccountingCoach PRO is an exceptional service. It not only provides all the essential material to succeed in learning accounting and finance, but also explains all the relevant details that make the difference when you need to understand the complexity of accounting systems. As a communication trainer and business coach, I had to pick up the language of accounting in no time in order to communicate more effectively with my clients. This website's benefits have exceeded my expectations. Many thanks for your great support." - Theirry F.