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CFA Level 1 FRA Questions and Answers.
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CFA Level 1 FRA Questions and Answers.
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CFA Level 1 FRA Questions andAnswers.
Current Ratio Answer- Current Assets divided by current liabilities
Quick Ratio Answer- Cash plus marketable securities plus receivables divided by current liabilities
Cash Ratio Answer- Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio Answer- Cash plus marketable securities plus receivables divided by average daily
expenditures
Cash Conversion cycle Answer- days in inventory plus days in accounts receivables minus days in accounts
payable
Accounts receivable turnover Answer- revenue divided by average accounts receivable
inventory turnover Answer- cost of goods sold divided by average inventory
Accounts payable turnover Answer- purchases divided by average accounts payable
Cost of Goods Sold Answer- Beginning inventory plus purchases minus ending inventory
Operating cycle Answer- days in inventory plus days in accounts receivable
, Fixed asset turnover Answer- revenue divided by average net fixed assets
working capital turnover Answer- revenue divided by average working capital
equity turnover Answer- revenue divided by average equity
debt to equity ratio Answer- total debt divided by total equity
debt ratio Answer- total debt divided by total assets
debt to total capital ratio Answer- total debt divided by total debt plus total equity
Financial leverage ratio Answer- average total assets divided by average total equity
interest coverage ratio Answer- EBIT divided by interest payments
Fixed charge coverage ratio Answer- EBIT plus lease payments divided by interest payments plus lease
payments
Gross profit Answer- Sales minus cost of goods sold
Gross profit margin Answer- gross profit divided by revenue
operating profit margin Answer- operating profit divided by revenue
pretax margin Answer- earnings before tax divided by revenue
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