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Related Flashcards
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Cards In This Set
| Front | Back |
|
A statement which presents
all items in percentage terms is called a(n):
|
Common-Size Statement
|
|
Relationships determined from a firm’s
financial information and used for comparison
purposes
are known as
|
Financial Ratios
|
|
Short-term solvency ratios
are also referred to as
|
Liquidity Measures
|
|
Current Assets/Current Liabilities
|
Current Ratio
|
|
The acid-test ratio is also
called the
|
Quick Ratio
|
|
Cast/Current Liabilities
|
Cash Ratio
|
|
Ratios which analyze a
firm’s ability to meet its long-term obligations are called:
|
Leverage Ratios
|
|
The ratio which includes
all debts of all maturities to all creditors is called the:
|
Total Debt Ratio
|
|
The financial ratio which is defined as
earnings before interest and taxes divided by
interest
paid is called the:
|
Times Interest Earned
|
|
Earnings before interest
and taxes plus depreciation divided by interest paid
|
Cash Coverage Ratio
|
|
ratios which measure how efficiently a firm
uses
its assets to generate sales
|
Asset Utilization Ratios
|
|
Cost of goods sold divided
by inventory
|
Inventory Turnover Ratio
|
|
The number of days it takes
a firm to sell its inventory is called the
|
Days Sales in Inventory
|
|
The number of times a firm collects their
outstanding credit accounts and reloans the
money
in one year is called the
|
Receivables Turnover
|
|
365 days divided by the
receivables turnover
|
Days Sales in Receivables
|
