I actually recommend skipping. I didn't read that section, and it didn't cause me any issues come exam time. It's such a small topic but would take considerable time to memorize the formulas.
I highly recommend skipping them. I didn't come across any on my exam and my thought process was “anybody can calculate ratios.” Better to focus on the conceptual stuff.
I highly recommend skipping them. I didn't come across any on my exam and my thought process was “anybody can calculate ratios.” Better to focus on the conceptual stuff.
Don't skip the ratios. They're not that hard to remember if you use simple tricks.
With turnovers 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 corresponds 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.
Don't skip the ratios. They're not that hard to remember if you use simple tricks.
With turnovers 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 corresponds 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.
Don't skip them– like others said, you should at least know the common ones (and their effect) for FAR and AUD for sure. I don't know about the other two sections yet.
Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂
Don't skip them– like others said, you should at least know the common ones (and their effect) for FAR and AUD for sure. I don't know about the other two sections yet.
Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂
When it comes to this exam, NOTHING is a waste of time. if its in your review material its fair game.
on one section of the exam I had an entire SIM on something that was mentined once in the appendix to my review book. No joke I came home still thinking about it and had a hard time finding ANY references to the concept.
When it comes to this exam, NOTHING is a waste of time. if its in your review material its fair game.
on one section of the exam I had an entire SIM on something that was mentined once in the appendix to my review book. No joke I came home still thinking about it and had a hard time finding ANY references to the concept.
.