Chapter $2,$ Know:

a$)$ Accrual Basis of Accounting

b$)$ Accounts receivable turnover

c$)$ Number of days sales in AR

d$)$ Acid$-$test ratio

e$)$ Current ratio

f$)$ Debt ratio

g$)$ GAAP

h$)$ Inventory turnover ratio

i$)$ Number of days inventory on hand

j$)$ Leverage

k$)$ Liquidity

l$)$ Market value

m$)$ Net profit margin

n$)$ Net Profit Margin $\%$

o$)$ Gross profit margin

p$)$ Gross profit margin $

q$)$ Quick ratio

r$)$ Return on equity ratio

s$)$ Rate of return $($chpt $3)$

t$)$ Total asset turnover ratio