Wall Street Prep Accounting exam with answers graded A+ 100% verified

Liquidity Ratios - measures of a firm's short-term ability to meet its current obligations Profitability Ratios - measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability) Activity Ratios - Measure of efficiency of a firm's assets Solvency Ratios - Measure of a firm's ability to pay its obligations Inventory Turnover - COGS / avg inventory Receivables Turnover - revenue / average accounts receivable DSO (Days Sales Outstanding) - AR/Credit Sales * days in period days in period/receivables turnover A/P turnover - COGS / Average A/P PPP (payables purchasing period) - days in period/ Accounts payable turnover Current Ratio - current assets/current liabilities Quick ratio (acid test) - Cash and AR divided by current liabilities Gross profit margin - gross profit/revenue operating margin - operating profit/revenue net profit margin - net income/revenue asset turnover - revenue/ average assets return on assets (ROA) - Net Income / Average Assets return on equity (ROE) - net income/ total equity Basic EPS - (Net Income - Preferred Dividends)/(Weighted Average of Shares Outstanding)