Exam (elaborations)
Ratios - FAR CPA Exam Questions and Answers 2024
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Ratios - FAR CPA Exam
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Ratios - FAR CPA ExamCurrent Ratio - answer Current Assets/Current Liabilities
Quick Ratio - answer(Current Assets- Inventory)/ Liabilities
Accounts Receivable Turnover - answer Sales (net)/Average Accounts Receivable (net)
Days Sales in Accounts Receivable - answer Ending Accounts Receivable (net)/ (Net
Sales/365)
Inventory Turnover - answer Cost of Goods Sold/Average Inventory
Days in Inventory - answer Ending Inventory/ (Cost of Goods Sold/365)
Accounts Payable Turnover - answer Cost of Goods Sold / Average Accounts Payable
Days of Payables Outstanding - answer Ending Accounts Payable/ (Cost of Goods
Sold/365)
Cash Conversion Cycle - answer Days Sales in Accounts Receivable + Days in
Inventory - Day of Payables Outstanding
Asset Turnover - answerNet Sales/ Average total assets
Profit Margin - answerNet Income/ Net Sales
Return on Assets - answerNet Income/ Average Total Assets
DuPont Return on Assets - answerProfit Margin x Asset Turnover
Return on Equity - answerNet Income/ Average Total Equity
Return on Sales - answerEBIT/Net Sales
Gross (Profit) Margin - answer(Net Sales - Cost of Goods Sold)/ Net Sales
Operating Cash Flow Ratio - answerCash Flow from Operations / Current Liabilities
Debt to Equity Ratio - answerTotal Liabilities/Total Equity
Total Debt Ratio - answertotal liabilities/total assets
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