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CFA Level 1 Financial Ratios Comprehensive Questions (FrequentTesed) with Verified Answers Graded A+

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CFA Level 1 Financial Ratios Comprehensive Questions (FrequentTesed) with Verified Answers Graded A+

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CFA Level 1 Financial
Ratios Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+




1/
10

, Contact for further consultation




1. Activity Ratios Answer: Measure how eflciently a company performs day-to-day tasks

such as the collection of receivables and management of inventory

2. Days of Inventory on hand Answer: days in accounting period/inventory turnover

3. Inventory turnover Answer: cost of goods sold/average inventory

4. Receivables turnover Answer: revenue (or revenue from credit sales) / average

receivables

5. Days Sales Outstanding Answer: Number of days in period / Receivables turnover

6. Payable Turnover Answer: purchases / average payables

7. Number of days payables Answer: Number of days in period / Payables turnover

8. Working Capital turnover Answer: revenue / average working capital

9. Fixed Assets turnover Answer: revenue/ average fixed assets

10. total assets turnover Answer: revenue / average total assets

11. Liquidity Ratios Answer: Measures of the short-term ability of the company to pay its

maturing obligations and to meet unexpected needs for cash.

12. Current Ratio Answer: current assets / current liabilities

13. Quick Ratio Answer: (Current Assets - Inventory) / Current Liabilities

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