6) The times-interest-earned ratio shows a creditor the firm's ability to pay interest on debt. 7) The current ratio is a key indicator of a company's ability to pay current liabilities. 8)...

6) The times-interest-earned ratio shows a creditor the firm's ability to pay interest on debt.

7) The current ratio is a key indicator of a company's ability to pay current liabilities.

8) Quick assets do NOT include inventory.

9) Merchandise inventory is NOT counted when computing the acid-test ratio.

10) The ratio of the market price of a share of stock to the dividends paid per share is called the earnings per share.

11) The excess of a company's current assets over current liabilities is called working capital.

12) Days in inventory is a ratio measure that shows how quickly a company can collect its receivables.

13) The gross profit percentage is an indicator of how well a company is positioned to pay off its short-term liabilities.

14) The accounts receivable turnover is an indicator of the ability of a company to collect cash from its credit customers.

15) The debt ratio is the ratio of total debt divided by total equity.