Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 56

Identify which of the following six metrics a through f best completes questions 1 through 3 below.
a. Days' sales uncollected
b. Accounts receivable turnover
c. Working capital
d. Return on total assets
e. Total asset turnover
f. Profit margin
1. Which two ratios are key components in measuring a company's operating efficiency _____ _______
Which ratio summarizes these two components __________
2. What measure reflects the difference between current assets and current liabilities ___________
3. Which two short-term liquidity ratios measure how frequently a company collects its accounts ________ __________