Across
- 4. The amount of a decrease in a company's accounts receivable will appear on the statement of cash flows as a ____________ amount.
- 6. Having cash to pay obligations when they come due.
- 8. Because of seasonal fluctuations, it is best to use the _____________ amounts of the receivables throughout the year when calculating the receivables turnover ratio.
- 9. From the time a company sells goods on credit until the money is received, the company is an __________ creditor.
- 11. The amount of a company's ___________ liabilities are used in the calculation of the current ratio.
- 13. The cost of goods sold divided by the average inventory is the inventory ___________ ratio.
- 14. When calculating the accounts receivable turnover ratio, a company's net ________ sales should be divided by the average amount of accounts receivable.
Down
- 1. Deferred revenues are reported on the balance sheet as a current ___________ until they are earned.
- 2. The ________ ratio is a better indicator of liquidity than the current ratio.
- 3. Changes in the amounts of most of the working capital accounts are usually shown in the ______________ activities section of the cash flow statement.
- 5. The term used to describe an inventory item that can no longer be sold due to changes in technology and/or demand.
- 7. Temporary ________________ will be listed after cash on a company's balance sheet.
- 10. The _______ collection period indicates the average time taken to collect trade debts.
- 12. The operating cycle is useful for estimating the amount of ______ capital that a company will need in order to maintain or grow its business.