7. The current ratio is most often monitored by A. shareholders of the firm B. Institutional investors (pension funds, Insurance companies) C. analysts D. lenders to the firm 8. The times interest earned ratio explains A. how many times you have to pay interest B. if the operating income will cover the interest expense C. how much time it takes to earn interest D. earning compared to income 9. The debt ratio indicates the percentage of liabilities compared to A. short-term liabilites B. Goodwill C. current assets D. the sum of current, fixed and all other assets 10. The days AP is the divided by 365 11. Total asset turnover ratio measures A. how the firm sells its assets B. sales to the current assets C. how well the assets are applied to sales D. how often the assets are turned-over 12. Days of Inventory measures the number of A. purchases you need to maintain 30 days of inventory. B. students needed to answer a finance question. C. days for inventory to become revenue D. days you need to hold inventory before you can sell it. 13. Accounts Payable turnover A. No answer text provided. B. measures the times payables are turned over. C. is a long-term liquidity ratio D. compares purchases to the average accounts payable