1. Liquidity ratios measure:

how much a company is worth

the efficiency a firm has performed in its quest for profits

the ability of a company to pay its long term debt

the short term ability of the company to pay back its obligations

2. Profitability ratios measure:

the efficiency a firm has performed in its quest for profits.

how much a company is worth.

the ability of a company to pay its long term debt

the short term ability of the company to pay back its obligations.

3. Solvency ratios measure:

how much a company is worth

the ability of a company to pay its long term debt

the short term ability of the company to pay back its obligations.

the efficiency a firm has performed in its quest for profits.

4. Match each of these ratios with its type of analysis

Price-earnings ratio [(profitability, liquidity, solvency, investors (common stockholders)]

times-interest-earned [(profitability, liquidity, solvency, investors (common stockholders)]

quick ratio [(profitability, liquidity, solvency, investors (common stockholders)]

asset turnover [(profitability, liquidity, solvency, investors (common stockholders)]

return on assets [(profitability, liquidity, solvency, investors (common stockholders)]

average collection period [(profitability, liquidity, solvency, investors (common stockholders)]

debt-to-equity [(profitability, liquidity, solvency, investors (common stockholders)]

dividend yield [(profitability, liquidity, solvency, investors (common stockholders)]

gross profit percentage [(profitability, liquidity, solvency, investors (common stockholders)]

5. Current Assets divided by Current Liabilities is the _____ ______. answer is two words; remember to leave one space between them. The first word has seven letters; the second word has five letters.

6. Net income divided by net sales is the ____ _____ _______. (three words; first word has six letters, second has two, third has five)-- make sure to leave one space between words

7. A _______- size financial statement presents the various account balances as a percent of a key figure. (one word six letters)

8. Current Assets minus Current Liabilities is the _____ ______. answer is two words; remember to leave one space between them. The first word has seven letters; the second has seven letters)

9. Current Assets divided by Current Liabilities:

Return on sales ratio

Debt to total assets ratio

Return on assets

Working capital

Current ratio

10. net income divided by net sales:

Return on sales ratio

Return on assets

Working capital

Debt to total assets ratio

Current ration

11.To observe percentage changes over time in selected financial data, investment professionals often calculate _______ percentages. (five letters)

12. Items that generate wealth changes in a business that do not appear on the income statement are presented on the

Statement of stockholders equity

Statement of retained earnings

Balance sheet

Alternative income statement

Statement of comprehensive income