es of liquidity, profitability, and 24. Which of the following combinations presents correct examples of liquidity. pronta solvency ratios, respectively? Liquidity Profitability Solvency a. Inventory turnover Inventory turnover Times interest earned b. Current ratio Inventory turnover Debt to total assets c. Receivable turnover Return on assets Times interest earned d. Average days collection Payout ratio Return on assets 25. Which of the following pairs of terms in the area of financial statement analysis are synonymous? a. Ratio - Trend b. Horizontal - Trend C. Vertical - Ratio d. Horizontal Ratio 26. Which of the following statements is true? a. Trading securities are debt securities that the investor has the intent to hold to maturity. b. Trading securities are securities bought and held primarily for sale in the near term. C Trading securities are securities that may be sold in the future. d. Trading securities are reported at cost in the balance sheet. 27. In accounting for available-for-sale securities, the Unrealized Loss-Equity account should be classified as a a. liability on the balance sheet. b. loss on the income statement c. deduction in the stockholders' equity section of the balance sheet. d. contra asset on the balance sheet. 28. Boon Corporation has the following stock outstanding: 6% Preferred, $100 Par $1,000,000 Common Stock, $50 Par 2,000,000 No dividends were paid the previous 2 years. If Boon declares $400.000 of dividends in the current year, how much will preferred stockholders receive if the preferred stock is cumulative? a. $220,000 b. $120,000 c. $60,000 d. $180,000 29. The statement of cash flows is a(n) a. required supplemental financial statement. b. required basic financial statement c. optional basic financial statement. d. optional supplementary statement