[Aguilar9370]

Hi all,

I am taking my exam in two days. I am weak on financial ratios and I don’t know if I should spend my time reviewing them. What are your thoughts? I find it difficult to memorize them all and learn how to apply them.Please Help!

[A1lessio]

Hey I had a similar dilemma when studying for audit. I just did a 3-4 hours 2 days before. I remember a lot of the turnover ratios were similar and easy to remember. Make sure you understand the relationship and that could be some big points.

AUD (08/02/2016)

[.]

You definitely should practice the ratio simulations. No need to memorize the ratios though….trust me on this.

FAR - June 2016 - 88
REG - July 2016 - 89
AUD - Aug 2016 - review phase currently
BEC - Sep 2016 -

Wiley CPA Excel & Ninja MCQ

[mckan514w]

Agree with @circadian malfunction- trust me when I say you need to know your ratios…

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[RE2PECT]

I don't think you need to memorize them, but you need to know their purpose and how they affect the financial statements. Both times I took AUD I had sims that involved them so I would definitely make sure you go over the important ones.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[hawkgolf12]

Adding on to this topic. How do I, and Aguilar, approach studying for the adjusting journals entries? I'm retaking AUD and may have stumbled across a SIM that contained these, but I can't remember ;). Is it as simple as knowing the correct entry and simply reversing it? Also, is it consistent with the prospective treatment of estimates and retrospective treatment for accounting principles?

REG - 8/9/16
AUD - 9/8/16
FAR - 10/28/16
BEC - TBD

Becker & Ninja MCQ

[Wannafree]

@mckan514w ,can you please contribute your AUD and FAR strategy ? 95 is awesome and it would be worth reading your strategy and SIM exp.

[Gary]

You should have a basic understanding of them and what they do. I had a sim on ratios and it was all conceptual.

AUD 8/18/16
FAR 11/16
BEC 1/17
REG 2/17

[Aguilar9370]

You guys are awesome!!! Thank you so much!!!

[mckan514w]

@Nath- ha ha ha I think you mean @circadian malfunction– as you can see from my scores I got the “perfect score”- aka by the skin of my teeth but damn I will take it- so I will not be dispensing any advice just lucky to have gotten by! 🙂

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Lou]

Advice for ratios: 100% know how they can impact things. What I would do is lets say inventory turnover increased. I would write an up arrow for CGS and down arrow for avg inventory, and then evaluate which of the answer choices made those numbers go up or down.

Advice for AJE: what i would do is write down what the JE recorded was, and then write down what the JE should be. And then you just make whatever adjustment to get to the ending JE that it should be. was super helpful rather than just thinking of how to reverse what was done.

FAR- taken 8/11/16....now the wait begins
AUD- scheduled 9/8/16
BEC- scheduled 10/9/16
REG-scheduled 12/10/16

Live a few years like most people won't, to live the rest of your life like most people can't.

[hawkgolf12]

For those of you who have had success with financial ratios, can you explain how you grasped the material? I've been going over SIMs on ratios that ask for you to chose an explanation for the change, or which explanation would not explain the change. I cannot seem to develop the knowledge to pick out an obvious answer. I understand why the ratio changed, as in COGS increased/Avg. Inv. decreased, but I cannot for the life of me pick out the actual explanation. It really seems as if FAR knowledge goes a long way in helping. Knowing the journal entries for not so simple explanations seems to be my downfall for this.

I'm retaking in AUD in 2 days, and as you can see, I received a 74 on my first attempt. Ratios and AJE SIMs were both relevant on my first attempt and I am trying to avoid another short coming. I have been doing really well with MCQs and my knowledge of AUD is there, other than these two concepts. Any and all tips will be appreciated. Any videos, personal notes, websites, etc. would be awesome.

REG - 8/9/16
AUD - 9/8/16
FAR - 10/28/16
BEC - TBD

Becker & Ninja MCQ

[cmckenzie]

I am so not a fan of the ratios.. I am definitely taking the conceptual approach!

[hopingtogetFAR]

I have taken FAR and then BEC. Audit in less than 12 hours. I didn't learn them for FAR, but for BEC I noticed that the days ratios were all: A B/s Account divided by an I/S acct over 365. So inventory turnover in days is (Avg Inv/ (COGS/365). For other turnover ratios, it would be the I/s acct divided by the B/s acct without the 365. I just tried to find small hints in things to give me a reminder of the ratio. I hope that helps. I came up with several things and I think it helped on BEC; hopefully, it all has stuck with me for Audit. I will find out in December.

[Author]

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