Contact for further consultation
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
1/
10
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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10