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Financial Ratios (Word Scramble)

Author:
Harold Averkamp, CPA, MBA

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 WGRONKI
WORKING GRKWOIN

2. Current assets divided by current liabilities is the __________ ratio.

CURRENT EUNRCTR
CURRENT NTRUCER

3. Cost of goods sold divided by average inventory is the inventory ______________.

TURNOVER RVTRNEUO
TURNOVER UOETRRNV

4. Net ______ sales divided by accounts receivable is the receivables turnover ratio.

CREDIT CIETRD
CREDIT DITRCE

5. Days sales in accounts receivable is 365 divided by the ____________ turnover ratio.

RECEIVABLES EIBASRVLCEE
RECEIVABLES BEEIAEVCSLR

6. This is excluded from the current assets when calculating the quick ratio.

INVENTORY OINVTENYR
INVENTORY IRONTNYEV

7. Another name for the quick ratio is the ______ test ratio.

ACID DACI
ACID DCIA

8. _________ analysis results in all income statement amounts expressed as a percentage of net sales.

VERTICAL LEVICRAT
VERTICAL TERVLAIC

9. __________-size balance sheets show all amounts as a percentage of total assets.

COMMON CMNOOM
COMMON NMCOMO

10. ____________ analysis results in amounts expressed as a percentage of an earlier, base year.

HORIZONTAL NZIOOALTHR
HORIZONTAL OTZRANIOLH

11. The debt to equity ratio is the ratio of ____________ to stockholders' equity.

LIABILITIES ITLELIIIASB
LIABILITIES BASIILITLIE

12. When dividing income statement amounts by balance sheet amounts, it is logical to use an ___________ of the balance sheet amounts.

AVERAGE ERVGAEA
AVERAGE EREAGVA

13. Financial ratios are part of financial statement ___________.

ANALYSIS ANLSIYAS
ANALYSIS NLYIAASS

14. The current ratio and the quick ratio are indicators of a company's ___________.

LIQUIDITY YTIDIULIQ
LIQUIDITY LIUYQIDTI

15. The profit margin ratio and the return on assets are indicators of a company's ____________.

PROFITABILITY IYIFABLPIORTT
PROFITABILITY TIIRFPABLOIYT

16. A very large amount of debt in relation to the amount of assets indicates that a company is highly _______________.

LEVERAGED DVEELAGER
LEVERAGED EEALDGVRE

17. Vertical analysis is associated with __________-size financial statements.

COMMON CMONMO
COMMON MOCMNO

18. Horizontal analysis is associated with _______ analysis.

TREND TNDER
TREND RDNET

19. The receivables ______________ ratio is net credit sales divided by the average amount of accounts receivable.

TURNOVER NROVTURE
TURNOVER RTOERVUN

20. Accountants calculate the inventory turnover ratio by dividing the ______ of goods sold by the average inventory.

COST STCO
COST SOCT
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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