[MarathonRunner1]

Is it a deal breaker if you don’t master the financial ratios to pass Audit? All comments are appreciated. Thanks!

AUD: 94 (Nov. 2013)
FAR: 76 (Oct. 2013)
BEC: 79 (Nov. 2012)
REG: 84 (Dec. 2013) It's Mile 26.2, and we finished. Blood, sweat and tears, passion, perseverance, and never giving up, we did it!

California Candidate

[seattleacct]

In my practice sims throughout both CPAexcel & Wiley, there were questions regarding effects on equity, gross profit ratios, days sales in receivables, etc.

I think it is important to know all of the ratios. It's pretty easy once you start seeing similarities in all of them. You can remember ratios, using simple tricks, such as with turnovers knowing the ‘type' of ratio it is, will determine the denominator. For example with “A/R” Turnover, A/R is the denominator and the item that cooresponds with A/R is Sales, so sales is the numerator. Inventory Turnover is similar, but the corresponding item is COGS. Inventory is the denominator and COGS is the numerator.

A few other things to remember: whenever a ratio mentions “debt” it is usually referring to liabilities. If the ratio is ‘something “to” something', remember that whatever is mentioned prior to the word “to” goes in the numerator and what comes after “to” goes in the denominator.

B:76
A:64, 73, 91!
R:77
F:76

CPAexcel, Wiley Test Bank, Ninja Audio & Notes

[MarathonRunner1]

Everyone,

Thanks for the great responses. Very helpful.

Seattle Acct,

That's a fantastic approach to memorizing the ratios efficiently. Thank you.

AUD: 94 (Nov. 2013)
FAR: 76 (Oct. 2013)
BEC: 79 (Nov. 2012)
REG: 84 (Dec. 2013) It's Mile 26.2, and we finished. Blood, sweat and tears, passion, perseverance, and never giving up, we did it!

California Candidate

[MarathonRunner1]

Everyone,

Thanks for the great responses. Very helpful.

Seattle Acct,

That's a fantastic approach to memorizing the ratios efficiently. Thank you.

AUD: 94 (Nov. 2013)
FAR: 76 (Oct. 2013)
BEC: 79 (Nov. 2012)
REG: 84 (Dec. 2013) It's Mile 26.2, and we finished. Blood, sweat and tears, passion, perseverance, and never giving up, we did it!

California Candidate

[jpowell31]

I would think you would be more likely to get them on your SIMs – maybe a general question on the MCQ. I had a practice exam where there was a SIM but the ratios were actually provided in another tab so who knows – my advice would be not to focus too much on them but spend an hour or so twice before the exam to run through them. As Seattle says once you review a couple of times you'll realize that they're mostly similar to each other.

[jpowell31]

I would think you would be more likely to get them on your SIMs – maybe a general question on the MCQ. I had a practice exam where there was a SIM but the ratios were actually provided in another tab so who knows – my advice would be not to focus too much on them but spend an hour or so twice before the exam to run through them. As Seattle says once you review a couple of times you'll realize that they're mostly similar to each other.

[MarathonRunner1]

Thanks JP.

AUD: 94 (Nov. 2013)
FAR: 76 (Oct. 2013)
BEC: 79 (Nov. 2012)
REG: 84 (Dec. 2013) It's Mile 26.2, and we finished. Blood, sweat and tears, passion, perseverance, and never giving up, we did it!

California Candidate

[MarathonRunner1]

Thanks JP.

AUD: 94 (Nov. 2013)
FAR: 76 (Oct. 2013)
BEC: 79 (Nov. 2012)
REG: 84 (Dec. 2013) It's Mile 26.2, and we finished. Blood, sweat and tears, passion, perseverance, and never giving up, we did it!

California Candidate

[Author]

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