The _____ ratio is a useful measure of a company's operating results calculated as net income to net sales.

The four basic financial statements are:

a. Income Statement, Balance Sheet, Unadjusted Trial Balance, Adjusted Trial Balance

b. Income Statement, Balance Sheet, Statement of Owner's Equity, Statement of Cash Flows

c. Income Statement, Balance Sheet, Statement of Owner's Equity, Adjusted Trial Balance

d. Income Statement, Balance Sheet, Statement of Owner's Equity, Unadjusted Trial Balance

Debt ratio is:

a. Used to analyze a company's financial condition

b. Calculated as total liabilities to total assets

c. Used to reflect risk associated with a company's debts

d. All of the above

The _____ describes a company's financial position - by the types and amounts of assets, liabilities, and equity -- at a point in time.

Return on Assets is useful in evaluating management, analyzing and forecasting profits, and planning activities.

a.True

b.False

The _____ explains changes in equity from net income (or net loss) and from any owner investments and withdrawals over a period-of-time.

The profitability ratio used to calculate net income to average total assets is:

a. Profit margin

b. Current ratio

c. Debt ratio

d. Return on assets

The Income Statement:

a. Identifies cash inflows (receipts) and cash outflows (payments) over a period-of-time.

b. Summarize adjusted ledger accounts and amounts

c. Describes a company's revenues and expenses along with the resulting net income or net loss -- over a period-of-time due to earnings activities

d. Resets revenues, expenses, and withdrawal account balances to zero at the end of each period

At the end of the accounting period, the ending capital balance from the statement of owner's equity is moved to the income statement.

a.True

b.False

The current ratio is defined as current assets divided by current expenses.

a.True

b.False