51. A liquidity ratio measures the a) operating success of a company over a period of time. b) ability of a company to survive over a long period of time c) short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. d) number of times interest is eamed or "covered 52. The current ratio is: al calculated by dividing current liabilities by current assets b) used to evaluate a company's liquidity and short-term debt-paying ability c) used to evaluate a company's solvency and long-term debt paying ability d) calculated by subtracting current liabilities from current assets 53. An increase in the inventory turnover indicates a) the company isseling is inventory more frequently b) the company's cost of goods sold has decreased c) the company's average inventory has increased d) the company's profily has improved 54. The debt total assets to measures a) the company's profitability b) whether interest can be paid on debet in the current year c) the proportion of interest paid relative to dividends paid d) the percentage of the totales financed by Creditors 55. Solvency to measure: a) a company's cash flow b) a company's liquidity c) a company's ability to survive over the long term. d) a company's general financial performance 56. The asset turnover ratio measures: a) how often a company replaces its assets b) how efficiently a company uses its assets to generate sales. c) the portion of the assets that have been financed by creditors d) the overall rate of return on assets 57. Eamings per share is calculated a) only for common shares b) only for preferred shares c) for common and preferred shares donly for bonds 58. An increase in the gross profit margin combined with a decrease in the profit margin indicates to mestors that the company's a) se decreased during the period b) cost of goods sold increased during the period c) profit increased during the period d) operating expenses increased during the period 5. Ratios are used as tools in financial analysis a) instead of horontal and vertical analyses b) because they may provide information that is not apparent from inspection of the individual components of the ratio c) because even single ratios by themselves are quite meaningful d) because they are prescribed by GAAP. 60. A imitation in calculating ratios in financial statement analysis is that a) requires comparisons b) no one other than management would be interested in the c) some financial statements contain many estimates they seldom entity problem areas in a company