Here is a list of common CPA exam financial ratios that you will likely see in FAR and AUD. If you have other suggestions on related ratios and formulas, please let me know here.
- Current Ratio = Current Asset/Current Liabilities.
- Acid Test= (Current Asset- Subscription-inventory)/Current Liabilities
- Inventory Turnover = Sales/(Average Inventory)
- To find # of days = 365/Inventory Turnover
- Account Receivable Turnover= COGS/(Average Account Receivable)
- To find # of days = 365/Account Receivable Turnover
- Working Capital Turnover = Sales/ (Average Working Capital)
- Asset Turnover = Sales/ (Average Assets)
- Account Payable Turnover = COGS/(Average Account Payable)
- 365/Account Payable Turnover = COGS Turnover
- A detailed powerpoint presentation on CPA exam financial ratio by CPAjournal @ blogger
- 50 most frequently asked questions on this site
- My ultimate CPA exam tips