1. a. c. 2. c. 3. a. 4. a. b. c. d. Which stakeholder would be most interested in the company's profitability? investors b. IRS creditors d. management Which stakeholder would be most interested in the company's ability to pay principal and interest? investors b. IRS creditors d. management Which stakeholder would be most interested in the company's operations being efficient? investors b. IRS c. creditors d. management The main way(s) to analyze financial statements are: common-size analysis inventory and accounts receivable turnover horizontal and vertical analysis trend analysis Which of the following is a liquidity ratio? accounts receivable turnover b. current ratio c. debt to total assets d. gross profit rate Horizontal analysis is also known as: trend analysis b. common-size analysis vertical analysis d. profitability analysis Vertical analysis is also known as: trend analysis b. common-size analysis vertical analysis d profitability analysis Which of the following is an asset management ratio? acid test ratio b. average collection period debt to stockholders' equity d. return on sales Which of the following is a debt management ratio? rate of return on total assets b. inventory turnover current ratio d. times interest earned 5. a. 6. c. 7. a. c. 8. c. c. 10. b. Which of the following is a profitability ratio? rate of return on common stockholders' equity debt to total assets acid test ratio accounts receivable tumover d