98) The acid test ratio is a tighter measure of a company's ability to pay current liabilities than the current ratio.
99) The inventory turnover ratio indicates how rapidly inventory is sold.
100) The A/R turnover ratio is the ratio of net credit sales to average net accounts receivable.
101) Days' sales in receivables is a measure of a company's ability to collect their accounts receivable.
102) Rate of return on net sales is a measure of a company's profitability.
103) Rate of return on total assets is: (net income plus interest expense) divided by average total assets.
104) Working capital is a measure of a company's ability to pay its current obligations.
105) The times-interest-earned ratio is a measure of ability to cover debt.
106) The inventory turnover ratio is the ratio of cost of goods sold to average inventory.
107) Which of the following is considered a strong current ratio?