[Anonymous]

I am currently reviewing the liquidity, operating, profitability, and equity ratios, and some are definitely important, but there are also some strange ones. Are they important enough to memorize?

Securities Defensive-Interval Ratios = (Cash + (Net) Receivables + Marketable

Securities) / Average Daily Cash Expenditures

Times Preferred Dividend Earned Ratio = Net Income / Annual Preferred Dividend

Obligation

Common Stock Dividends Pay Out Ratio

Total Basis = Cash Dividends to Common Shareholders / Net Income to Common Shareholder

Per Share Basis = Cash Dividends per Common Share / Earnings per Common Share

[rfc63]

Yes, you need to know them for the exam in order to work through the questions. At the very least, be familiar enough with them so that you can narrow questions you might get down to a couple of options which increases the likelihood of getting the right answer.

[rfc63]

Yes, you need to know them for the exam in order to work through the questions. At the very least, be familiar enough with them so that you can narrow questions you might get down to a couple of options which increases the likelihood of getting the right answer.

[Anonymous]

If you want the stock answer, yes you need to know everything. If you want the realistic answer, you PROBABLY don't need to know all of the obscure ones. Know and really understand the basic ones (current and quick, inventory turnover, receivables turnover, etc.), and be able to break it up by component so you know what a change in pieces of the ratio do to the overall ratio.

[Anonymous]

If you want the stock answer, yes you need to know everything. If you want the realistic answer, you PROBABLY don't need to know all of the obscure ones. Know and really understand the basic ones (current and quick, inventory turnover, receivables turnover, etc.), and be able to break it up by component so you know what a change in pieces of the ratio do to the overall ratio.

[super_cpa]

The exam, most probably, would not be comprised of all the formulas BUT since you don't know which one might show up you might as well memorize/practice all of them.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[super_cpa]

The exam, most probably, would not be comprised of all the formulas BUT since you don't know which one might show up you might as well memorize/practice all of them.

- "Of all people, you know who I am… who the world needs me to be. I’m Wonder Woman."

[Author]

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