@Qlad I think you need to have a good understanding of how to do each ratio and how information flows from the income statement to the balance sheet. I look at the ratio and then go over the choices and automatically eliminate the choices which have no chance of being correct. I usually end up with the correct answer because I'll eliminate the probably 2 of te choices off bat, and the third eliminated choice would cause the ratio to go up, rather then go down, so then I'll know the correct answer. For some reason, the questions I've encounted are all structured like that – 2 choices will not even relate, one choice will be going the wrong way, and once choice is the answer, also they seem to like AR and AP turnover ratios.
AR turnover = Sales/ Average AR. If sales went up, but AR remained the same, the turnover ratio will go up because sales increased. If credit sales for December for the current year was higher than credit sales for prior year, there is a good chance ending inventory is higher, so say sales remained the same, the turnover ratio would decrease because you are dividing sales by a higher AR number.
I've have gotten through Professional responsiblities, and engagement planning, working on internal controls right now. Have not been as committed as I should be with this stuff.
FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.
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