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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|
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