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 RERTCUN3. Cost of goods sold divided by average inventory is the inventory ______________.
TURNOVER VUOERRTN4. Net ______ sales divided by accounts receivable is the receivables turnover ratio.
CREDIT CIRDET5. Days sales in accounts receivable is 365 divided by the ____________ turnover ratio.
RECEIVABLES ICEEESRVLAB6. This is excluded from the current assets when calculating the quick ratio.
INVENTORY NYVTORNEI8. _________ analysis results in all income statement amounts expressed as a percentage of net sales.
VERTICAL TAIRLVCE9. __________-size balance sheets show all amounts as a percentage of total assets.
COMMON OMMNCO10. ____________ analysis results in amounts expressed as a percentage of an earlier, base year.
HORIZONTAL RHLONIOTZA11. The debt to equity ratio is the ratio of ____________ to stockholders' equity.
LIABILITIES ILSTILAIBIE12. When dividing income statement amounts by balance sheet amounts, it is logical to use an ___________ of the balance sheet amounts.
AVERAGE EVGAREA14. The current ratio and the quick ratio are indicators of a company's ___________.
LIQUIDITY QULYIITID15. The profit margin ratio and the return on assets are indicators of a company's ____________.
PROFITABILITY ARTYBFLOIIITP16. A very large amount of debt in relation to the amount of assets indicates that a company is highly _______________.
LEVERAGED DEGVEREAL17. Vertical analysis is associated with __________-size financial statements.
COMMON CMMONO19. The receivables ______________ ratio is net credit sales divided by the average amount of accounts receivable.
TURNOVER RVUOTNRE20. Accountants calculate the inventory turnover ratio by dividing the ______ of goods sold by the average inventory.
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