15) Ratios provide a ________ measure of a company's performance and condition. A) definitive B) relative C) gross D) absolute 16) Cross-sectional ratio analysis is used to ________. 17) Time-series analysis is often used to ________. 18) An analyst should be careful when conducting ratio analysis to ensure that ________. 19) Without adjustment, inflation may tend to cause ________ firms to appear more efficient and profitable than ________ firms. A) newer; older B) older; newer C) smaller; larger D) larger; smaller 20) ________ ratios are a measure of the speed with which various accounts are converted into sales or cash. 21) ________ may indicate a firm is experiencing stockouts and lost sales. 21) A(n) ________ is useful in evaluating credit policies.
22) The ________ ratio indicates the efficiency with which a firm uses its assets to generate sales. A) quick B) current asset turnover C) total asset turnover D) inventory turnover 23) ________ ratio measures the proportion of total assets financed by the firm's creditors. 24) The ________ is a popular approach for evaluating profitability in relation to sales by expressing each item on the income statement as a percent of sales.