1. ____________  Liquidity ratiosmeasure the ability of a business to meet current debts and obligations as they come due.

 

2. One of the most widely used liquidity measures is the ____________current ratiowhich compares current assets and current liabilities.

 

3. Activity ratios are often termed ____________turnover ratios.

 

4. Insight into the amount of protection that is afforded the long-term creditors is provided by a ratio called ____________debt to total assets (and times interest earned).

 

5. The annual cash dividend per share divided by the current market price of stock is the____________dividend yield.

 

6. ____________Operating activitiesare those which arise from transactions and events that enter into net income.

 

7. ____________Investing activitiesare those that involve investment of an entity's resources.

 

8. ____________Financing activitiesare those that supply a firm with funds from either the firm's owners or creditors.

 

9. Under both the direct and indirect approaches to preparing a statement of cash flows, a separate schedule of ____________noncash investing/financing transactions should be presented.

 

10. Under the____________direct method , individual items on the income statement are translated from the accrual basis to the cash basis.

 

11. Under the ____________indirect method, operating cash flows are calculated by starting with accrual basis net income, then adding and subtracting amounts to convert to the cash basis.

 

12. If the indirect method is used, noncash expenses like depreciation should be ____________addedin calculating the cash provided by operating activities.

 

13. The purchase of land, disposal of equipment, and so forth are ____________investing activities.

 

14. The payment of dividends and receipt of proceeds from bond issues are examples of ____________financing activities.