Select the letter of the description that best fits each ratio or analysis. Choose from:

a. Reports all amounts as percentages of a base amount                                                                  

b. Prepared to show the relationship of each item on the financial statement to a base amount

c. Measure a company’s ability to pay its long-term debts

d. Current assets less current liabilities

e. Process of comparing a company’s results to that of another competitor or against industry averages

f. Cash, short-term investments, and net accounts receivable divided by current liabilities

g. Expanded form of horizontal analysis that allows financial statement users to compare several years of information against a base year, to see the percentage change over time

h. Measure how efficiently the company is operating

i. Measures the company’s ability to pay for its current obligations with its current assets

j. Analyzes the financial statements of an organization across time periods  

k. Calculated to assess how well a company is performing

l. Measures how quickly a company can collect cash from its credit customers

m. Calculates how much of a company’s assets are financed with debt

n. Measures how well a company is utilizing its assets to earn a profit

o. Measures how many times a company can sell its average inventory in a given period

p. Calculates the ratio of total stockholders’ equity to the number of common shares outstanding

q. Calculates a company’s ability to pay its interest expense from its income

r. Amount of net income earned for each share of the company’s average common stock outstanding

s. Measure a company’s ability to pay its short-term obligations as they become due

t. Compares the market price of each share to the earnings per share

1.____ times interest earned

2.____ common size financial statement

3. ___ earnings per share

4. ____  vertical analysis

5. ___ horizontal analysis

6. _____ accounts receivable turnover ratio

7. ____ benchmarking

8. ____ quick ratio (acid test)

9. ____inventory turnover ratio

10. ___return on total assets ratio

11. ___working capital

12. ___ book value per share of common stock

13. ___ trend percentages

14. ___ debt ratio

15.  ___ current ratio

16.  ___ liquidity ratios

17. ____ price/earnings ratio

18.  ___ solvency ratios

19. ____efficiency ratios

20. ____ profitability ratios