Series 65 – FORMULAS UPDATED ACTUAL Exam Questions and CORRECT Answers

Series 65 – FORMULAS UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Money created from an initial reserve increase of $100,000; Currency Holding = 20% & Reserve
=4% - CORRECT ANSWER - 100k* (1+20%) / (20% + 4%) = $500k


Owners Equity;
Assets = $500MM

Liabilities = $200MM - CORRECT ANSWER - Assets - Liabilities = OE
500 - 200 = $300MM in OE
Don't worry about current assets !!! (or liabilities)


Working Capital - CORRECT ANSWER - CURRENT ASSETS - Current Liabilities



Current Ratio - FIFO - CORRECT ANSWER - Higher current ratio where prices are rising



CURRENT Ratio - LIFO - CORRECT ANSWER - Higher Current Ratio if prices are
falling


QUICK Ratio
cash 500; marketable securities 200; receivables 300 other current assets 500 and - CORRECT
ANSWER - CURRENT Assets - INVENTORY / CURRENT Liabilities
-or-
Cash + Market Securities + AR / CURRENT Liabilities


Total Debt - CORRECT ANSWER - Total Debt / Total Assets