13. Developing common size financial statements by dividing all balance sheet items by total assets or all income statement items by net sales:

a. ratio analysis

b. trend analysis

c. vertical analysis

d. cross sectional analysis

14. To compare relationships between two or more financial statement accounts or comparisons of account balances to nonfinancial datais called:

a. ratio analysis

b. trend analysis

c. vertical analysis

d. cross sectional analysis

15. Which category of ratios means the ability to pay short term debts?

a. activity ratios

b. liquidity ratios

c. profitability ratios

d. debt ratios

16 Inventory and Accounts Receivable Turnover are ratios that come under the category of:

a. activity ratios

b. liquidity ratios

c. profitability ratios

d. debt ratios