CFA Level 1 FRA Study Guide

Current Ratio CORRECT ANSWER Current Assets divided by current liabilities Quick Ratio CORRECT ANSWER Cash plus marketable securities plus receivables divided by current liabilities Cash Ratio CORRECT ANSWER Cash plus marketable securities divided by current liabilities Defensive Interval Ratio CORRECT ANSWER Cash plus marketable securities plus receivables divided by average daily expenditures Cash Conversion cycle CORRECT ANSWER days in inventory plus days in accounts receivables minus days in accounts payable Accounts receivable turnover CORRECT ANSWER revenue divided by average accounts receivable inventory turnover CORRECT ANSWER cost of goods sold divided by average inventory Accounts payable turnover CORRECT ANSWER purchases divided by average accounts payable Cost of Goods Sold CORRECT ANSWER Beginning inventory plus purchases minus ending inventory Operating cycle CORRECT ANSWER days in i