Financial Ratios: Understanding Key Metrics for Business Performance, Quizzes of Financial Accounting

Download Financial Ratios: Understanding Key Metrics for Business Performance and more Quizzes Financial Accounting in PDF only on Docsity! TERM 1 acid test (quick ratio) DEFINITION 1 current assets-inventory/ current liabilities TERM 2 book value per share DEFINITION 2 owner's equity/ shares outstanding at end of year TERM 3 inventory turnover DEFINITION 3 cost of goods sold/ average inventory TERM 4 average collection period DEFINITION 4 365/ accounts receivable turnover TERM 5 accounts receivable turnover DEFINITION 5 sales/ average net accounts receivable TERM 6 debt to equity DEFINITION 6 total liabilities/ total liabilities +owner's equity OR total liabilities/ total assets TERM 7 average day sales in inventory DEFINITION 7 365/ inventory turnover TERM 8 return on assets DEFINITION 8 net income/ average assets TERM 9 current ratio DEFINITION 9 current assets/ current liabilities TERM 10 return on equity DEFINITION 10 net income/ average owner's equity